The two massive closures of Louisa and Al Bayan magazine

Two massive closures for Luiza Magazine and an official statement from the retailer about it

You don't need to be a big expert on the subject to come to the conclusion that Luiza Magazine is one of the largest retailers in Brazil. However, even the giant company is going through changes that raise some concerns, and this is exactly what happened in September last year.

At that time, according to information from the Valor portal, Luiza magazine confirmed the massive closure of two distribution centers. The first lockdown was in southern Brazil and the other in the northeast of the country. They justified the decision at the time as “modifications to the company’s capacity.”

Information was provided by Roberto Bellissimo, Director of Financial and Investor Relations. The group also closed smaller warehousing centres, called “cross-docking”, which serve as transit points for products and express distribution, but did not specify how many units were closed.

Roberto Bellissimo also said the group had made “adjustments to its capacity in the corporate team”, but did not say how many layoffs there would be. Louisa Magazine made a mistake when it stated on its balance sheet that it had “renegotiated contracts, improved investments in marketing and logistics, and made adjustments to its operating capacity.”

“As a result, sales and administrative expenses relative to total sales decreased by 0.6 percentage points, compared to the same period last year,” they said. There were R$160 million in restructuring and business integration expenses in the April-June period.

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What are the largest retailers in Brazil?

According to the data prepared by the Brazilian Society of Retail and Consumerism (SBVC), for the year 2023, and published by the Exame portal, companies follow this ranking:

• Carrefour Group
• Acai
• Louisa Magazine
• via
• Americans
• Raya Drogassil
• Boticario Group
• Natura & Co
• Matthews Group
• Pau de Acucar Collection

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