Read this Friday’s edition of the FolhaMercado newsletter (19) – 05/19/2023 – Market

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Why is Marisa closing stores?

Traditional fashion retailer Marisa expects to close 91 units from March to June this year, at a cost of BRL 62 millionsaid the CEO of the network, João Pinheiro Nogueira Batista.

Which explains: the decision is an attempt by the retailer to cut costs by closing stores “deficit by definition”, in the term used by the company itself.

• The company estimates that its measures will generate an increase in Ebitda (earnings before interest, taxes, depreciation and amortization) of almost BRL 70 million per annum.

Remember: Marisa is one of the companies whose shares plummeted in the first quarter after hiring a financial advisor to restructure its debts.

• At the time, liabilities totaled almost R$600 million, with R$200 million due this year.

• Now, the network claims that the debt renegotiation process has already been successful with approximately 90% of suppliers and 65% of property owners.

Marisa’s shares have accumulated a fall of 46% this year.

Earlier this month, the company was sued in court by two suppliers who filed for bankruptcy for debts totaling more than R$709,000.

• The company said at the time that the values ​​are insignificant compared to what has already been negotiated and that these processes were also in the process of negotiation.

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At 10, Nubank targets wealthy

During the ten years since its founding, Nubank has helped to turn the national financial sector upside down, becoming the largest fintech in the country and surpassing many banks in market value when it went public on the New York Stock Exchange.

Which explains: after reaching 79 million of customers, fintech now makes it a priority to increase the revenue it has with each one of them.

• Today, she is at $8.5 (R$ 42.19), on average, but the bank claims that in “more mature harvests”, the value rises to $22 (BRL 109.21).

It is to reduce this difference that Nubank will prioritize two fronts:

↳ High income: this type of customer usually generates more revenue for the bank with the use of services, such as the use of their own credit card, but also with an investment platform, insurance, etc.

• It is exempt for those who spend R$ 5,000 or more or have R$ 50,000 invested in the bank and offers benefits such as 1% cashback and VIP lounges at airports.

↳ Preferred bank: David Vélez, founder and CEO of Nubank, says that 46% of adult Brazilians are customers of the digital bank, but of these, only 57% use the roxinho as their main account.

• The executive says he sees room to quintuple that customer base.

• Nubank considers that a customer uses the bank as a principal when he transfers more than 50% of his net monthly income.