Magazine Luiza

Magazine Luiza, or Magalu, is one of the largest Brazilian retail companies, along with GPA, Viavarejo, Lojas Americanas and others. The company is owned by Brazilian billionaire Luiza Trajano and family.[1]

Magazine Luiza S.A.
TypeSociedade Anônima
B3: MGLU3
Ibovespa Component
IndustryRetail
Founded1957
HeadquartersFranca, São Paulo, Brazil
Number of locations
880
Key people
Frederico Trajano
(CEO)
Luiza Helena Trajano
(Chairwoman)
ProductsFurniture, Electronics, Cosmetics, Clothes
Revenue US$ 4.5 billion (2018)
US$ 153.8 million (2018)
Number of employees
26,370
SubsidiariesNetshoes
Websitewww.magazineluiza.com.br

The company has more than 1000 stores, and 9 distribution centers. It offers 10,000 items in their stores, and as of end 2018, its online marketplace hosted more than 3,300 vendors offering a combined total of 4.3 million products. The company reported annual sales of US$220 million from its online marketplace for 2018.[2] It is also one of the largest e-commerce companies of Brazil, competing with B2W and Via Varejo.

In 2020, Magazine Luizia purchases Hubsales, a platform that allows industries to sell directly to consumers, Canaltech, a technology site focused on gadget reviews and InLoco Media, the advertising part of InLoco, active in geolocation mobile data.[3]

History

The company was founded in 1957 in Franca.

In 1992, Magalu launched its first “virtual” stores, which at the time were physical retail outlets equipped with multimedia ordering kiosks.[4] There are 162 Magalu stores in Brazil today with such kiosks still in use.[2] In 2000, Frederico Trajano, a third-generation Luiza and the company’s current CEO, joined the company to direct the launch of its ecommerce division. Trajano told Forbes in 2019 that he joined the company with “a simple philosophy to do an omnichannel strategy,” involving ecommerce orders that could be shipped directly to consumers or picked up at physical Magalu retail outlets.[2] In January 2016, Frederico Trajano became Magazine Luiza’s CEO.[5]

In November it was announced that the trainee program would only accept Black Brazilians in order to confront structural racism, in which Black Brazilians are often sidelined.[6]

References
  1. UPDATE 1-Brazil's Insinuante, Ricardo Eletro agree to merge - Reuters, Mar 29, 2010
  2. Grant, Michelle. "The Brazilian Retailer Conquering Omnichannel". Forbes. Retrieved 2019-05-07.
  3. "Magazine Luiza anunciou a compra de duas startups para explorar um mercado com potencial bilionário: a publicidade online". ADVFN News (in Portuguese). Retrieved 2020-09-23.
  4. "Retailing in Brazil: "Virtual Store Business Model Will Gain Ground" - L'Atelier BNP Paribas". L'Atelier BNP Paribas. Archived from the original on 2019-03-05. Retrieved 2020-10-31.
  5. "After 3,800% Rally, CEO of Brazil Retailer Says It's Still Cheap". 2018-02-01. Retrieved 2019-05-07.
  6. Perspectives, Opinion by Arick Wierson for CNN Business. "Opinion: A company in Brazil made a controversial move to fight racism. Other CEOs should try it". CNN. Retrieved 2020-11-22.
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