November 21, 2019 / 1:04 PM / 23 days ago

UPDATE 1-Brazilian retailers Magazine Luiza and Lojas Marisa announce partnership

(Adds details on deal, context, shares)

SAO PAULO, Nov 21 (Reuters) - Brazilian retailers Magazine Luiza SA and Lojas Marisa SA announced on Thursday a partnership to sell smartphones and financial services in roughly 300 stores of apparel retailer Marisa, according to securities filings by the companies.

Magazine Luiza’s online clients will also be able to pick up some goods at Marisa’s stores, including in some cities where Magazine Luiza has no brick-and-mortar stores, such as Rio de Janeiro and Brasilia.

Under the terms of the memorandum of understanding, Magazine Luiza will manage the sale of mobile phones and financial products in some Marisa stores, being responsible for commercial strategy, product availability, invoicing, logistics, hiring and management of employees.

Magazine Luiza’s move comes as the retailer raised 4.3 billion reais ($1.02 billion) earlier this month in a share offering to expand its business. Both companies did not disclose the financial terms of the deal.

Shares in Magazine Luiza are among the best performers in Brazilian stock market, with a 130% rise over the last 12 months. Marisa’s shares have risen 70% in the same period.

Marisa said in a filing that the deal will allow it expand its portfolio and is also likely to increase consumer traffic to its stores. ($1 = 4.2079 reais) (Reporting by Carolina Mandl; Editing by Alison Williams and Steve Orlofsky)

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