What: Falabella is deactivating the Linio platform in Mexico on April 8 to realign its investment strategy towards Sodimac and the Falabella Soriana card.

Why it is important: This move signifies a strategic pivot in Falabella's approach to the Mexican market, emphasizing the importance of optimizing operations for enhanced efficiency and customer value. It reflects a broader trend of retail conglomerates fine-tuning their digital and physical presences to better meet consumer demands and financial sustainability. Additionally, it highlights the growing emphasis on sector-specific investments over general e-commerce in shaping the future retail landscape in Latin America.

Falabella, a retail giant, has announced the closure of Linio, its e-commerce platform in Mexico, as part of a strategic shift to concentrate on expanding its Sodimac home improvement chain and the Falabella Soriana financial service. This decision is part of a comprehensive optimization plan aimed at improving operational efficiency and customer service while enhancing business sustainability. Acquired in 2018 for USD 138 million, Linio's exit from Mexico marks a significant realignment of Falabella's investment priorities in the region. The company also plans to open new Sodimac stores in Monterrey and Guadalajara, demonstrating its commitment to growing its physical retail and financial service offerings in Mexico.

Falabella confirms that Linio is leaving Mexico