SAO PAULO, Aug 18 (Reuters) - Brazilian retailer Magazine
Luiza SA is open to "all kinds" of acquisitions
including supermarkets, its chief executive said on Tuesday,
pointing to a sector that has seen robust growth during
But Frederico Trajano cautioned that the company's interests
went beyond "product categories," citing the acquisition
strategy of larger rival Amazon.com whose targets have
ranged from robotics to supermarkets.
"The spectrum (of acquisition targets) is very wide when you
have a vision as comprehensive as ours. It's not just any piece
that fits the puzzle, but we can buy all kinds of companies,"
Trajano said on an analyst call. "Don't be surprised."
Magazine Luiza on Monday reported second quarter sales
surged 49% to 8.6 billion reais ($1.6 billion), helped by its
strong e-commerce footprint more than its brick and mortar
Magazine Luiza's shares shot up nearly 10% on Tuesday, on
for their biggest rise in over three months and the biggest
gainer on the Bovespa index.
Analysts at BB Investimentos noted that in July alone sales
in physical stores rose 10% and online sales soared 162%,
"signaling that consumer behavior changes observed in the second
quarter will be permanent and should favor companies well
positioned for online growth, like Magazine Luiza."
At the onset of the COVID-19 pandemic, physical store sales
accounted for about 55% of total sales, BB Investimentos noted.
(Reporting by Alberto Alerigi Jr
Writing by Jamie McGeever
Editing by Marguerita Choy)