SAO PAULO, Feb 11 (Reuters) – MercadoLibre will begin selling products from Brazilian food retailer Assai on its e-commerce platform starting in late March, the firms said on Wednesday, with the Uruguay-based company also storing and delivering the goods.
The move is the latest by MercadoLibre, Latin America’s largest company by market capitalization, towards adding other retailers to its platform in its largest market Brazil, while also representing a fresh push into the supermarkets category.
For Assai, the partnership could help drive sales growth with lower investments than demanded by new brick-and-mortar stores, as the company has reduced store openings in recent years to cut net debt.
The partnership will include nonperishable foods, as well as categories such as hygiene and perfumery, with Assai becoming a client of MercadoLibre’s full commerce service for storing and delivering, executives from both firms said at a press conference.
Assai, which operates more than 300 Brazilian stores under a hybrid wholesale-retail format, does not directly sell online to customers, only through delivery apps, such as iFood.
“We’ve done a lot of calculations and projections, and we’re confident that we’ll be able to maintain our current level of competitiveness, even with the fee we’ll have to pay to MercadoLibre,” Assai’s Chief Executive Belmiro Gomes said.
Financial details of the partnership, including data sharing, were not disclosed.
The partnership will initially offer 400 types of products delivered from three MercadoLibre distribution centers in the southeastern state of Sao Paulo, said Yunes. Deliveries will reach the entire country by the end of the year, he added.
MercadoLibre last year announced a partnership to sell products of Brazilian retailer Casas Bahia, in a boost to expand sales of electronics and household appliances.
Yunes said the new deal also includes Assai’s stores buying supplies on MercadoLibre, and cashback on its fintech Mercado Pago for clients of MELI+ loyalty program that purchase Assai’s products.
(Reporting by Andre Romani, Editing by Natalia Siniawski and Lincoln Feast.)
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