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Shopee’s Rise Raises Risks for Brazil’s Battered Retail Stocks
- Competition from Southeast Asia giant seen threatening margins
- Shopee’s share in Brazil could rise to 20% by 2025: Goldman
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The rapid expansion of Sea Ltd.’s Shopee e-commerce platform in Brazil has emerged as the latest threat for the country’s retailers, posing a risk to any recovery in their battered shares.
Retailers Americanas SA, Magazine Luiza SA and Via SA have all extended losses this year after slumping at least 58% in 2021, while an MSCI index for consumer-discretionary company shares trades near the lowest since 2004. The weakness has been driven by tepid economic growth prospects in Brazil, anticipation of a slowdown in earnings and mounting fears over the competitive landscape.