Magazine Luiza will increase contributions 2018

Sao Paulo-the Magazine Luiza will increase "significantly" investments in 2018, accelerating physical store openings, renovating units to a new concept and deploying additional services to the marketplace, said yesterday the company at an event for analysts and investors.
"Our focus next year is the expansion of investments. We have invested a year an average of $150 million R and we significantly increase that figure, "said the company President, Frederico Trajano. According to him, the contribution will be made in three pillars: technology, acceleration of opening new stores and physical reform of existing units-in that order of priority.
The increased Capex is made possible by the subsequent offer of shares (follow on) held in September by the company and that allowed the capture of R $1.5 billion. "We did the follow on to increase store openings and reduce our debt. Let's finish with a very strong cash position and accelerate investments, "said Tarle. This year, the company has increased the pace of openings, with the inauguration of 60 new units, front only 2016 8:00 pm. Next year, the Executive said the company "will open more", but I didn't need the exact number.
Existing stores, Magazine Luiza's work will be to deploy a new concept of operation, turning the units in mini distribution centers. For that, the company will extend the loading dock for 30% of the space of the store. Today the storage area represents, on average, 15% of the total. The increase will be on top of the boxes, which has become less necessary with the company's investment in mobile checkout (payment via smartphone vendors). The model of "mini CD" will be deployed initially in 10 to 20 units of the network, in a pilot project that will start in the first months of 2018. The roll out to all stores will begin as early as next year and should take around two years to complete. The command of the company informed that still has invested in expanding the service offering for retailers in the marketplace. A month ago, for example, was released the delivery Magalu offers traders the same logistical contract partners that the company has with private carriers and post office. "30 sellers have already joined and generated a 22% drop in the cost of delivery for them," said the Executive Director of e-commerce, Eduardo Galanternick.
At the beginning of next year the Magazine Luiza throws also a fulfillment solution. In practice, the shopkeeper of the marketplace can leave their products stored in central distribution of Magazine Luiza, who will be responsible for all the logistics part. Other than Delivery in fulfillment Magalu freight of items will be done by micro network partners carriers, with even lower cost.
Another service that will start in 2018 is the Magalu payments. The platform will improve payment service of retailers, as well as the anticipation of receivables from credit cards. For the Magazine Luiza, the prediction is that the solution to increase the profitability of the marketplace, since the retailer will gain with the spread between the value captured in the Bank and offered to the retailer.
Express delivery
At the time, Magazine Luiza has also announced the launch of express delivery, within 48 hours, for all purchases made by the application. At first, however, the shipping in two days will be just for the region of the greater São Paulo and Belo Horizonte, but must be extended to other regions.
Express delivery has already begun the work, within the pilot project since yesterday.