MAGAZINE LUIZA S.A.
Corporate Taxpayer ID: 47.960.950/0001-21
Company Registry (NIRE): 35.3.0010481.1
NOTICE TO THE MARKET
Magazine Luiza S.A. ("Company" or "Magalu"), announces to its shareholders and the market in general the highlights of Black Friday.
Due to the demands of the Covid-19 pandemic, specifically the need to avoid agglomerations of people in the physical stores on Black Friday, the Company implemented a novel sales strategy which emphasized guaranteeing lower prices throughout the month of November. This strategy was very positive for e-commerce and physical store sales growth, allowing the Company to once again exceed its sales targets in November.
Extending the trend of the last quarters, the Company in November reached a mid triple digit increase in e-commerce sales (above 100%, for clarification purposes). With this excellent performance, Magalu increased its market share in Brazilian formal e-commerce by 10 percentage points in November, compared to the previous year, according to Ebit / Nielsen.
November same store sales growth remained at the same rate as in previous months. Reflecting the success of our efforts to reduce store crowding during Black Friday and comply with all health and safety protocols, sales were strong during the first weeks of the month and relatively stable on the eve and day of Black Friday.
In terms of strategic imperatives, the Company once again used Black Friday to reinforce the message that no matter what you are looking for, #TheyHaveItAtMagalu (#TemNoMagalu). The non-perishable grocery category was also emphasized. In this category alone, Magalu sold more than 1 million items during Black Friday, from Thursday to Sunday, with a high volume of sales of items such as beer, ketchup, sour cream, chocolate, diapers and sunscreen.
Finally, this year's Black Friday was also marked by the best customer experience ever. Even with strong sales growth, complaints during the event represented only 0.02% of orders and were 15% lower than the average for the last 6 months, according to the Reclame Aqui customer service ranking website.
The Company will maintain its shareholders, and the market in general, duly informed under the terms of the applicable legislation.
São Paulo, November 30, 2020.
Roberto Bellissimo Rodrigues
Chief Financial Officer and Director of Investor Relations
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