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