Magazine Luiza provides 2017 best for consumption

São Paulo – "as much as the market stay bad, it''s hard to be a year like this." The phrase summarizes the expectation of the President of Magazine Luiza, Frederico Trajano, for consumption next year.
The company, he says, had above-average performance of the market this year and see on 2017 1 better environment.
End-of-year sales, he said, has given positive signs. Trajano said the Black Friday surpassed the company''s expectations.
In addition, the December results in retail as a whole tend to be benefited by the fact that the month had more working days since Christmas happens on a Sunday, he concluded.
The Magazine Luiza has decided to speed up the opening of stores to 2017 in comparison with the 20 points of sale opened this year.
According to the Executive, there was a brake on expansion this year because the first half was used primarily for existing stores contract renegotiation.
Complete this step for revision and reduction in the cost of rent, the company considers himself ready to return to accelerate expansion.
Historically, Magazine Luiza came opening about 50 shops of a year before deciding to make the break.
"There are good possibilities of expansion in more reasonable cost terms," concluded Trajan. He believes it will be possible to open more stores without the investment change significantly before the level of 150 million R$, which is the historical average.
In the assessment of the Executive, the company has managed to reduce the investment required for shop since today the prices of the real estate market are better and the shops are being rented without the collection of gloves, which calls was made by lessors at the time of signature of the contract.
In other cases, he said, it is still possible to negotiate the owners already are part of the interventions necessary to let the property ready for the store.
The journalists, the Executive still answered about possible impacts of the sale process of its largest competitor, Via retail.
He ruled out the hypothesis that any merger or acquisition transaction could significantly affect the competitive dynamics of the industry. "I don''t see any competitive threat," he said.