Brazilian retailers Magazine Luiza, Americanas announce e-commerce partnership

About this update from Magazine Luiza S.a.

Brazilian retailers Magazine Luiza BMFBOVESPA:MGLU3 and Americanas BMFBOVESPA:AMER3 announced an e-commerce partnership on Tuesday and will each start selling their products on the other's respective retail platform. Shares in Magazine Luiza were up 3% in the afternoon, while Americanas rose more than 5%. Brazil's equity benchmark index Bovespa BMFBOVESPA:IBOV, which Americanas is not part of, was stable.Americanas will begin to sell its products on Magazine Luiza's e-commerce platform from Tuesday, while Magazine Luiza will do the same on Americanas' platform in the next few weeks, the firms said in a joint statement. The deal is the latest of retailers joining forces in Brazil's e-commerce segment, which has seen an increasingly competitive environment this year as players, including Sea's NYSE:SE Shopee, Amazon NASDAQ:AMZN and MercadoLibre NASDAQ:MELI, expanded free-shipping policies and offered consistent promotions. MercadoLibre announced a partnership last month to sell Brazilian retailer Casas Bahia's BMFBOVESPA:BHIA3 products on its platform. Magazine Luiza itself has had an e-commerce partnership with China's AliExpress in Brazil since 2024. Magazine Luiza and Americanas said they have a complementary portfolio, given Magazine Luiza's strength in electronics, household appliances and cell phones, and Americanas' operations in snacks, cleaning products and personal hygiene.

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