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Magazine Luiza: Path to Omnichannel Proficiency in an Emerging Market (Brazil)

July 2019

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.

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Key Findings

Magazine Luiza achieves outstanding results in its omnichannel strategy

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.

Digital transformation is at the heart of Magazine Luiza’s omnichannel strategy

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.

Magazine Luiza leverages its store-based operations

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.

Omnichannel from the front- to the back-end…

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.

… and also as a base for its marketing campaigns

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.

Omnichannel brings both opportunities and challenges for the future

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.

 

Key takeaways: magazine Luiza’s omnichannel strategy
Magazine Luiza achieves outstanding results in its omnichannel strategy
Magazine Luiza: timeline
Digital transformation at the heart of the omnichannel strategy
Luizalabs : developing technology in-house to keep ahead of competition
Leveraging from store-based operations in the omnichannel strategy
Digital solutions to increase efficiency in store-based operations
Integration and diversification to increase efficiency in logistics…
… and for improved services
Omnichannel as a base for Magazine Luiza’s marketing campaigns
Omnichannel as a base for Magazine Luiza’s marketing campaigns (2)
Local knowledge to tailor marketing: Lu, the “human touch”
Looking ahead: category diversification to boost growth and dilute risks
Looking ahead: Marketplace brings opportunities and challenges
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