(Adds share performance, background throughout)
SAO PAULO, April 10 Lojas Riachuelo SA plans to
launch an e-commerce division later this month, signaling
efforts by the Brazilian apparel retailer to revive sales amid
the country's worst recession on record.
In a statement on Monday, Riachuelo said it spent 28 million
reais ($9 million) on the online commerce unit, which is
expected to offer Riachuelo's 15,000 items available across its
brick and mortar stores. Riachuelo is controlled by Guararapes
According to analysts, online channels have allowed rival
Lojas Renner SA to outperform peers in recent years.
Riachuelo's late arrival to e-commerce has allowed the
company to design a business model more likely to succeed,
online head Jonas Ferreira was quoted by the statement as
saying, noting that e-commerce and the chain's 291 stores will
work hand in hand.
Common shares of Guararapes rose 2.5 percent to 82 reais on
Monday, extending this year's gains to 36 percent.
Online retailers have been outperforming traditional brick
and mortar chains in Brazil, with sales rising 7.4 percent as
order volumes were roughly flat, data from consultancy Ebit
Sales volumes at traditional retailers fell 6.2 percent over
the same period, according to national statistics agency IBGE.
($1 = 3.1359 reais)
(Reporting by Paula Arend Laier; Writing by Tatiana Bautzer;
Editing by Richard Chang and Sandra Maler)