The Chilean retail giant Falabella has announced , one of the largest in the eCommerce sector in Latin America for 138 million dollars (about 118 million euros). In addition, the Chilean company has announced that it will propose at a shareholders’ meeting a capital increase of 84.3 million shares, equivalent to approximately 800 million dollars, with which to face investments for the expansion of the company.
An operation that revolutionizes the eCommerce sector throughout Latin America
What is Falabella?
Falabella is a company based in the city of Santiago, in Chile. Founded by an Italian emigrant in 1889, it has been growing unstoppably in recent decades, reaching have a department store chain largest in the continent. To establish a comparison with a company that you know first-hand, it would be something similar to that of The English Court,which carries out its commercial activity through various business areas: department stores, superstores, DIY, the CMR finance company, bank, and Falabella travel and insurance.
its expansion began in the 1960s, when they opened the first store outside of Santiago, located in Concepción, although it was in 1990 when began its internationalization processexpanding its operations to Argentina, Peru and Colombia.
Linio and his new role in eCommerce in LATAM
For his part, Line is one of the most prominent eCommerce in Mexico. It started its operations in 2012 and has a significant presence in Latin America. It is the fourth online sales site with the most income in Mexico, only surpassed by Amazon, Walmart and Mercado Libre and caccount with presence in Argentina, Chile, Colombia, Peru, Ecuador, Mexico, Panama and Venezuela. In 2015, Linio allocated 47 million euros to boosting its online business in the region.
your investors they include LIV Capital and Northgate, both based in Mexico, as well as Sweden’s Kinnevick and Germany, the same company behind other eCommerce giants like Zalando.
What does Falabella expect from Linio
with this operation Falabella hopes that Linio, with its presence in the eight countries already mentioned, offers you the ideal digital presence to sell your products online. And it is that although Fallabella has an online store in Chilein which they offer a large part of their catalog, want to have the know-how of a Pure Player like Linio, who could be key in the face of the imminent arrival of amazon to countries in the area, such as Chile.
An omnichannel oriented operation
In fact, behind this operation there is also a strong commitment to omnichannel. As Falabella explains in his statement, the 800 million dollars of his capital increasewill serve to develop its association with the Swedish , which will extend to Chile, Colombia and Peru.
The Swedish furniture retailer announced in May that it planned to open its first stores in South America under a franchise agreement with Falabella.
For his part, just a few weeks ago Linio opened its first physical store in Ecuador, with the idea that it also serves as a collection point for your online sales. The integration with Falabella will allow you to access a large number of establishments throughout the continent with which to continue deepening your omnichannel strategy.
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