Abstract

The case ‘Brazil’s Magazine Luiza SA: Changing the Face of Retail in Tune with the Times’ describes the various strategies adopted by Magazine Luiza S.A. (Magalu) to cope with the changes sweeping through the Brazilian retail industry and how these enabled it to fortify its position as one of the leading retailers in Brazil. The case starts out by providing an in-depth look into Magalu’s early history and the leadership shown by Luiza Helena Trajano (Helena) in making the company one of the leading retailers for household and electrical goods in Brazil. The strategies undertaken by the company to expand its geographical footprint and its foray into financial services are described. The case also describes in detail the company’s initiative to transform itself in keeping with the rising impact of digital in the retail space – to change from a traditional retail player into an Omni-channel retail company. The case ends with a look into the challenges being faced by Magalu and its future prospects.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the role played by an effective leader in a tough business environment
• Examine the impact of bolstering purchasing power of those at the ‘Bottom of the Pyramid’
• Compare the various strategies adopted by a retail company to expand its business
• Explore the need for a retail company to have an Omni-channel strategy and channel integration
• Understand the challenges faced by a retail company in Brazil

Keywords

Business Environment; Bottom of the Pyramid; Retail Management; Channel Decisions; Leadership Styles; Omni-channel strategy; Geographical expansion; Competitive threat; Digital Strategy; Online retailing; E-commerce; Country Killers; Channel Integration; Market Penetration Strategy; Consumer Segmentation