- The e-commerce platform grew 114% compared to the previous quarter and handled BRL 8.8 billion;
- The quarter was also marked by acquisitions and expansion in the offer of financial services.
The Brazilian retail behemoth Magazine Luiza (or Magalu) achieved a 63% growth in sales in the 2021 first quarter, as reported in its financial results. The increase was driven by e-commerce, which rose 114% compared to the previous quarter and handled BRL 8.8 billion. Currently, e-commerce accounts for 70% of the retailer’s total sales. Despite the temporary closure because of the COVID-19 pandemic, physical stores also increased their sales by 3.7%.
Magazine Luiza‘s net income reached BRL 81.5 million and the adjusted EBITDA was BRL 427 million, 56% greater than of the same period in 2020.
Magalu’s grew in all its operation fronts: online and physical, own inventories and marketplace. Digital sales increased 121.5% over the same period last year; the marketplace, with 56,000 sellers, grew 98% and reached BRL 2.4 billion in sales.
According to Frederico Trajano, Magalu’s CEO, the quarterly performance showed that the business model focused on a multichannel ecosystem is efficient. More than 1,100 physical stores are already serving as distribution centers for products sold on the digital platform. In addition, Magalu has been expanding into the financial business area.
The Magalu’s 2021 first quarter was also marked by acquisitions: the content platform Steal the Look and Jovem Nerd; VipCommerce, a supermarket management startup; ToNoLucro and GrandChef, in the area of food delivery; and the tech company SmartHint.
As disclosed by the company, the results led Magalu to reach the largest marketshare in its history, with an increase of 4.7%. “We continue having sustainable growth, without unnecessary margin trade-offs and generating profit,” said Trajano.