Magalu

active

Magazine Luiza (“Magalu” or the “Company”) is a Brazilian multichannel retail company (https://www.magazineluiza.com.br/) with a nationwide reach, including 21 distribution centers (DCs) across 17 states, 1246 stores and 175 last mile and cross docking centers stations. Around 70% of Magalu’s sales are done online. Magazine Luiza’s ecosystem includes i) conventional physical stores, ii) a digital platform where the Company sells its own products and that includes a marketplace where over 340,000 third-party companies can advertise and sell their products, and iii) stores where clients can get guidance to buy products through the website. The Company is not involved in the direct manufacturing of goods but offers around 128 million products such as appliances, electronics, furniture, fashion items and others. Magalu published a list of products that it does sell to its customers (https://universo.magalu.com/blog/artigo/produtos-proibidos) such as pesticides, perishable products, weapons and others. Magazine Luiza works with more than 11,000 delivery partners, most of which are registered as individual microentrepreneurs (MEI by its Portuguese acronym).IFC is considering an A loan of up to USD 100 million and a B loan of USD 50 million B loan to support Magalu in i) strengthening its marketplace technology platform aimed for the digital inclusion of retailers ii) building a multi-channel fulfilment platform to improve its logistics capabilities, and iii) developing cloud services infrastructure.