The article focuses on Frederico Trajano, CEO of Magazine Luiza (Magalu), and his strategic decisions since 2016. His leadership involved significant digital transformation, resulting in 50% growth even after closing 1,300 stores due to the pandemic.
Trajano's second strategic cycle aimed to reduce Magalu's reliance on the cyclical nature of the furniture and electronics retail sector, heavily influenced by interest rates. This involved the acquisition of various companies creating a diverse ecosystem, including Netshoes, Shoestock, and AiQFome. This strategy resulted in 40% growth in operating profit in 2024, despite high interest rates.
Magalu's diverse ecosystem includes businesses focused on online operations like Logbee (delivery management), Magalu Ads, and Magalu Pagamentos. The article highlights how Trajano managed to achieve integration while maintaining the autonomy of acquired companies, inspired by Chinese ecosystem models.
Trajano discusses challenges such as the need for greater tax equity between Brazilian and Chinese sellers on online platforms. He also addresses the potential of artificial intelligence to revolutionize the shopping experience in the future. The article concludes with Trajano's expectation of robust demand in 2025, despite potential economic slowdown.
A significant portion of the article also explores the history of Magazine Luiza, from its humble beginnings and the impactful role of Luiza Trajano Donato, to the company's current standing as a major player in Brazilian retail.