Magazine Luiza is a Brazilian retailer that was able to implement an efficient omnichannel operation while increasing both revenue and profitability in a challenging economic scenario. This report examines the key characteristics of the company’s omnichannel strategy, which offers insights for retailers in both emerging and developed markets.
Magazine Luiza is a Brazilian retailer that was able to evolve from a store-based operation focused on electronics and furniture to become an omnichannel platform with a broad product offer. It achieved outstanding sales and financial results throughout this process despite Brazil’s economic crisis.
Through its digital transformation process, Magazine Luiza was able to implement a digital culture and strengthen its own innovation centre. The company now sees itself as a technology company, and has been able to develop and implement digital solutions more effectively than most of its competitors.
While Magazine Luiza has focused on online channels, it acknowledges the importance of its store-based operations, and leverages them in its omnichannel strategy. The company has continued to invest in store expansion, and has been the best-in-class in terms of bringing digital innovations in-store.
Magazine Luiza has been able to integrate all its channels’ logistics in a unique back-office system, allowing the company to implement services such as click-and-collect and shipping from store. This, combined with a diversification of transportation services, has created efficiencies and diluted risks in its logistics operation.
Magazine Luiza is widely recognised for its effective marketing campaigns, and offers good examples of how to leverage an omnichannel operation and knowledge of local culture and lifestyles to engage consumers.
Through its omnichannel operation, Magazine Luiza is finding ways to reach a broader spectrum of consumers and expand its product portfolio. However, the company is entering a highly competitive environment.
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