Magazine Luiza shares soar after deal with “AliExpress”

Shares of retail company Magazine Luiza soared on Monday (24). The event occurred after the announcement of a partnership with the e-commerce site “AliExpress”. A 12% increase was recorded, leading the Ibovespa. The price of a single share, which was R$10.83 on Friday (21), reached R$12.24. Throughout the day, the value varied and today, at the opening of the market, it was quoted at R$12.00.

The business

The agreement between the two companies consists mainly of selling each other's products on their websites. On “AliExpress”, products available on the Brazilian e-commerce network will be sold. On Magazine Luiza, items from the “Choice” line will be offered, goods with full control of the platform. Negotiations lasted approximately seven months.

“Negotiations have accelerated in the last month, after the new tax rate was approved by Congress. We are very comfortable signing the agreement and announcing this partnership. The two platforms together have more than 700 million visits per month in Brazil. There are 60 million active customers on both channels. With complementary assortments, the chance of conversion (of sales) on both channels is very high. It increases our purchasing power.”said Frederico Trajano, CEO of Magazine Luiza, at a press conference.

Overall, Magazine Luiza's move was well received. JP Morgan, XP and Genial – well-known companies in the financial market – signaled that the change should be positive.

_{In Brazil, e-commerce has grown exponentially in recent years (Photo: rerpodução/geralt/Pixabay)}

Magazine Luiza

Founded in 1957 (Franca, São Paulo), Magazine Luiza is a Brazilian retail company. It has 1,250 stores spread across 20 states in the country, in addition to great recognition in e-commerce, where it has collected several awards. The store was created by the couple Luiza Trajano Donato and Pelegrino José Donato, originally named “A Cristaleira”.

In the 2022 “Interbrand” ranking, the company ranked ninth in the country's most valuable brand. Among retail companies, Magazine Luiza is the best placed, followed by Renner. Between 2016 and 2020, “Magalu” was the company that provided the highest return to shareholders in the world, with 226.4%.

Featured Photo: “Magalu” shares soar; value reaches R$12.24 (Photo:reproduction/Magazine Luiza)