Investing.com – Retailers Magazine Luiza (SA:MGLU3) and Carrefour (SA:CRFB3) are expected to announce the end of their partnership agreement on Tuesday. However involving the sale of products electronics of hypermarket stores. The information was published in today's edition of Valor Econômico newspaper.
The companies had an agreement since the middle of last year in which Magazine Luiza managed, in a pilot project, the units of Carrefour Limão and Shopping Anália Franco, both in São Paulo, in sales of electronic products.
Magazine Luiza
The value of sales of these goods was allocated to Magazine Luiza, which paid rent to the supermarket based on the amount collected. Therefore, according to the publication, the statement should be released this Tuesday.
Valor points out that Carrefour was not convinced that the business model was profitable, as it expected better results with the partnership than with the management of the area, which ended up not happening.
The newspaper points out that annual sales in the hypermarket areas of the stores are R$ 3 billion a year. The Carrefour website alone, which was not included in the deal, sells R$ 2 billion worth of electronics annually. Now, the stores managed by Magalu will have their structure dismantled.
Despite this, informs Valor, Magalu should continue to look for partners to follow the business model. The newspaper recalls that the company already has an agreement with Marisa to operate the sale of electronics.
Possibilities of partnerships in the future
So now, Magazine no longer needs to invest in the deal, which could be interesting from the company's cash point of view, at a difficult time for the market like the current one, highlights the report.
The publication also mentions that the end of the agreement was not marked by disagreement, not ruling out the possibility of a new partnership in the future.
