Bloomberg reports that a surge in online shopping is straining Brazil’s warehouse capacity, spurring the push for wider distribution networks. Companies like Arezzo Industria & Comercio SA, Walmart.com, and B2W Cia Digital are expanding their warehouse capacities. This has caused foreign investors to be interested in the market. Prologis, based in San Francisco, joined Brazil’s Cyrela Commercial Properties SA in building warehouses to lease to Walmart.com and others. Singapore’s Global Logistic Properties is increasing the size of its existing distribution centers by almost 100 percent, and Australia’s Goodman Group is adding four sites in Rio de Janeiro and Sao Paulo.
“Five years ago, we started with one distribution center here in Barueri, and realized we needed to expand,” Flavio Dias, president of Wal Mart Store Inc.’s Brazilian online sales, said in a telephone interview. “Given the size of Brazil, distribution needs to be more regionalized than centralized.”
Due to the rising middle class, Brazilians consumers are migrating to the internet as computers reach more households. According to Forrester Research Inc., online revenue is set to grow 20 percent this year to 34.7 billion reais ($15.3 billion).