Mercado Livre predicts a R$10 billion investment

The amount exceeds the country's average annual competitors' expenditures, such as B2W, Magazine Luiza, and Amazon.

The amount destined to Brazil is a record in the company's history.

By: SiiLA News

03/02/2021

With a strong increase in online sales in the country and a fierce dispute among the major players in the sector, Mercado Lovre reported yesterday that it plans to invest R$10 billion in Brazil in 2021, more than double the amount spent in 2020 (R$4 billion), and a record amount in the company's history, founded in 1999.

The amount exceeds the country's average annual competitors' expenditures, such as B2W, Magazine Luiza, and Amazon. The amount is still equivalent to the sum of Mercado Livre's investments in Brazil in the last four years and should be aimed mainly at the distribution and logistics area. Part of the capital is expected to come from a recent issuance of the group's debt securities (US$1 billion), completed in January.

In an interview last night, Stelleo Tolda, CEO of Mercado Livre, said that the company plans to open three new distribution centers in Brazil this year, reaching a total of eight centers. Just three years ago, there was only one. The company operates through a "marketplace," selling products from third-party sellers (retailers and individuals) as well as its inventory.

The need to accelerate delivery times and improve the level of service to consumers - a key issue in the projects of the company's competitors as well - has led Mercado Livre to increase its investment projections.

Read the full story (in Portuguese).

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