Acer has reportedly formed cooperation with Brazil-based home appliance retail chain Casas Bahia to sell its products in the retailer's close to 600 stores throughout Brazil, according to sources from the upstream supply chain.

Casas Bahia is the largest home appliance retail chain in Brazil and with the cooperation Acer's PC shipments are expected to pick up significantly in June and even double in July, benefiting from the back-to-school season, the sources said.

Acer is currently cooperating with Flextronics Brazil for the assembly of its PC products and is having Wistron handle production line management, noted the sources, adding that Acer will mainly focus on producing 14-inch notebooks with volume production to start in the second quarter.

Acer president Jim Wong previously pointed out that the company's PC sales in Brazil increased 20% on year in 2012 and sales are expected to grow 25% in 2013.

Although Acer has been aggressively pushing its ODM partners Wistron and Compal Electronic to expand their production capacities in Brazil, the two ODMs are taking a cautious attitude about the strategy since Brazil's complicated tax policies and highly-fluctuating exchange rate are able to create significant exchange losses for investing companies, the sources noted.

Currently, only Compal Electronics and Foxconn Electronics (Hon Hai Precision Industry) have established assembly plants in Brazil. Wistron has chosen to partner with Flextronics Brazil for the assembly business in the country initially and will decide whether to establish its own plants based on needs in the future, the sources added.