The Magazine Luiza group opens a multi-brand megastore this Tuesday on Avenida Paulista, in place of the old Livraria Cultura, closed in April this year after the chain’s bankruptcy. The unit will be the largest physical store in the Magalu chain and will bring together for the first time all the group’s major retailers: Estante Virtual, KaBuM!, Netshoes, Época Cosméticos and Magazine Luiza itself.
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According to the retailer’s CEO, Frederico Trajano, the intention was to create a concept store. The 4,000 square meter space will sell appliances, toys, games, sneakers and even books.
“My dream is to put all the company’s brands there,” Trajano said during Expo Magalu, the retailer’s August event in São Paulo for sellers.
On the occasion, Trajano explained that the new unit will serve as a strategic point to strengthen the chain’s physical stores.
In addition to the creation of the megastore, the historical and cultural spaces of the site have been preserved, such as the Eva Hertz theater, located on site.
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Conjunto Nacional’s Magalu concept store will follow the multi-channel business model. In other words, customers will have access to all services, like Retira Loja, and sellers will have another Magalu agency there, a delivery point for items sold through the marketplace.
“We want to integrate products from our retail partners into our inventory,” Trajano said.
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Magalu has more than 1,240 stores in twenty states across the country. On its marketplace, it has 359,000 sellers. It owns the online brands Netshoes, Zattini, Época Cosméticos, Estante Virtual and KaBuM!. It also owns a food delivery platform, AiQFome. The company’s app is accessed by more than 50 million monthly active users, according to the company.
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Magalu posted an adjusted net profit of 37.4 million reais in the second quarter of this year. During the same period last year, the retailer recorded a loss of 198.8 million reais.
The closure of Livraria Cultura was ordered by the Superior Court of Justice (STJ) after the company failed to pay its rent since April 2020, totaling more than 15 million reais in arrears. The company went into receivership in 2018, and in February 2023, the São Paulo Justice Court declared it bankrupt.
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