Magazine Luiza will turn mini-Entertainment Center distribution store

The changes in the role of the physical store should start getting clearer in the Brazilian retail sector. Next year, the Magazine Luiza must transform its 790 stores in minicentros of species distribution, you should store products for customer who bought a product via the website of the network do the withdrawal in store or for delivery in the House of the consumer who lives nearby. The outlets are offering the goods, but will go through adjustments to work also as small warehouses.

Other chains, like Extra, Casas Bahia and Lojas Americanas, already initiated reforms in stores to adapt the operation to the service of "click and collect"-online purchase and product search at the point. Are measures that reduce the cost with shipping account, currently the line that weighs more for networks operating at selling online, followed by financial expenses. "We should spend doing deliveries from shops, transforming them into distribution minicentros next year," said Decio Sonohara, Executive Director of Magazine Luiza''s infrastructure, during meeting with analysts and investors on Friday.
By the end of December, 600 stores will be operating the system and, in the early months of next year, the project must achieve all the almost 800 units. The stocks must go if adapting to meet the supply of clients to the point catch the product purchased on the site or those who make online orders, but prefer to receive at home. In the future, the plan is to make the stores of Magazine Luiza in delivery points also from partner retailers products of the company in the "market place". Is a change of model. For decades the retailers dramatically decreased inventory areas.

Through the market place, small retailers sell their products on the website of the company paying for the service of "hosting". The idea is that a consumer can buy from any other chain, at the market place Magazine, remove this merchandise in stores. And the Magazine will receive the merchant partner for providing this service. Industry experts believe that other leaders of this market, how B2W (controlled by American stores) and Cnova (of Casas Bahia and Ponto Frio), will offer this same service to partners of their portals.


Is a change in the way he worked the store for decades. By the current model, the consumer electronics retailers have reduced dramatically the areas of stocks of its stores, as a result of increased direct distribution centres for home consumers. The Department stores will continue to be the starting point of the supplies of massively, but the stores are also act as a support, a small "hub", the so-called "last mile" of customer service. Last week, The Wall Street Journal published the Amazon studying open 2000 stores in the United States and some will work as great "drive-thru" with online purchase and withdrawal of goods in these stores.

In Brazil, two years ago, and it''s been selling Cnova B2W by Commerce with withdrawal of goods in physical points (Magazine Luiza started this year). On B2W, controlled by American stores, the option to purchase online and search the store functioned, in September, in 250 points of sale, versus 80 1 year earlier. In the Grupo Pão de Açúcar, this system will reach 1,400 stores by February, including points of Casas Bahia, Ponto Frio, Extra, Extra mini market and Minute. In February 2016, reached just over 1000 stores.


In the country, which was seen by then in the process of evolution of the stores was an improvement on the sale of financial services and a larger space for experimentation. In the vision of Frederick Trajan, President of Magazine Luiza, the fixed cost of the stores will have to drop "dramatically" to be viable in the digital world. "The consumer agrees to pay at 5% to 10% more for a product in relation to the price on the website, and to sell with this difference, the store has to offer much more, in terms of services and of service, which offers today," said the Manager. The Magazine Luiza must resume the opening more stores accelerated in 2017, but did not mention numbers.