Shopee's rapid growth threatens retailers in Brazil

The growth of Shopee e-commerce platform as a shopping destination is already considered a warning sign for Brazilian retailers, who are starting 2022 trying to recover from losses in the market.

As a context, important names in the sector, such as Americanas and Magazine Luiza, registered a jump in annual loss driven by the accumulated devaluation of 58% of their shares on the stock exchange.

For analysts, one of the factors that helps justify the poor result is the country's weak economy and the fear of investors of fiercer competition in the national retail this year.

Focused on less expensive products, Shopee — which began operating in 2019 in Brazil — was one of the companies that spurred the interest of investors amidst the uncertainty scenario.