Our Strategy

In 2025, Magalu celebrates ten years under the leadership of Frederico Trajano as CEO. This decade has been marked by major transformations, guided by two strategic cycles.

The first cycle, from 2016 to 2020, was focused on digitalization. During this period, Magalu reinvented itself, evolving from a traditional retailer into one of Brazil's largest multichannel digital platforms. This pioneering transformation included the rapid expansion of e-commerce, full integration between physical stores and digital channels, the launch of the marketplace platform, and the development of cutting-edge technology and logistics infrastructure.

The second cycle, which began in 2021, is focused on consolidating the Magalu ecosystem. In this phase, the company has diversified its revenue and earnings streams and expanded its reach beyond traditional retail, positioning itself as a robust and resilient ecosystem. This evolution was enabled by the strategic acquisition of more than 20 companies in recent years, including well-known brands such as Netshoes, KaBuM!, Época Cosméticos, Aiqfome, Estante Virtual, and Zattini. These acquisitions strengthened Magalu's presence in new markets and supported the creation of four major service platforms, which now serve all group companies and marketplace sellers.

1. Magalog: Magalu's Logistics Platform

As part of our ecosystem consolidation strategy, Magalog represents a milestone in the evolution of Magalu's logistics. Formed through the unification of five companies into a single platform, Magalog has positioned itself as one of Brazil's largest logistics operators, serving both the companies and the sellers within our ecosystem. With a network of 21 strategically located distribution centers and an integrated logistics network, Magalog enables ultra-fast deliveries—often on the same day—while offering end-to-end solutions including pickup, warehousing, and transportation. This model is especially advantageous for small and medium-sized sellers, democratizing access to efficient logistics and empowering entrepreneurs to scale their businesses with confidence.

Within this framework, Magalu's Multichannel Fulfillment stands out as an innovative solution that integrates online and offline operations, further expanding opportunities for our sellers. With ten distribution centers already enabled for this model—representing approximately 25% of products sold on the marketplace—the solution delivers faster shipping and lower costs. In many cases, the same vehicle that replenishes physical stores also transports 1P and 3P e-commerce orders, optimizing operations. Additionally, 3P fulfillment costs are absorbed by the existing DCs, creating an efficient structure with lower delivery costs across the entire ecosystem. These efficiencies have the potential to double conversion rates for 3P sales and enhance the customer experience, as evidenced by an NPS that is 10 percentage points higher compared to other marketplace delivery methods.

The implementation of the multichannel model further strengthens the Magalu ecosystem by offering sellers flexibility, reach, and efficiency, while ensuring high service levels, competitive costs, and the best possible shopping experience for our customers. In addition to serving Magalu and its group companies, Magalog also makes its logistics infrastructure available to external clients—maintaining operational excellence in all cases.

2. MagaluBank: Financial Services for Customers and Sellers

MagaluBank is one of the core pillars of our ecosystem, playing a key role in promoting financial inclusion, accessibility, and digitalization. Its creation addresses two major challenges in the Brazilian market: limited access to credit and the complexity of financial transactions. In response, MagaluBank offers innovative solutions that effectively meet the needs of both consumers and marketplace partners, making financial operations more accessible and efficient for everyone. In addition to expanding access to financial services, it also strengthens the ecosystem's monetization:

• Luizacred: A joint venture with Itaú, Luizacred offers credit cards with exclusive benefits for Magalu customers. This financial solution was created to provide easier access to credit for millions of Brazilians, expanding their purchasing power and promoting financial inclusion. Today, we offer two cards: the Cartão Luiza, designed for in-store shoppers, and the Cartão Magalu, focused on enhancing the online shopping experience. Both cards can be used at any establishment, inside or outside the Magalu ecosystem, and offer advantages such as accessible installment plans, special discounts, and exclusive promotions. This combination of convenience and unique benefits further strengthens our connection with customers, encouraging loyalty and increasing opportunities for purchases and promotions within Magalu.
• Magalu Pagamentos: This is the financial hub of our ecosystem, offering a complete, secure, and integrated solution for both consumers and marketplace sellers. With features such as split payments, PIX processing, and a digital account, the platform streamlines transactions, providing greater speed and financial control for customers and sellers alike. Additionally, the receivables advance feature allows sellers to access their funds quickly, strengthening their financial health and driving business growth. More than just a payment facilitator, Magalu Pagamentos is a strategic pillar in the ecosystem's monetization, enhancing financial efficiency and creating new revenue opportunities.
• Magalu Consortium: An affordable alternative for purchasing goods, offering flexible, interest-free installments. The consórcio allows Magalu customers to achieve their goals through careful planning, without the burden of high interest rates. This model is ideal for those looking to acquire high-ticket items—such as vehicles, real estate, and appliances—while benefiting from accessible monthly payments.
• Buy Now Pay Later: A solution that offers flexible payment options for consumers. Available in Magalu's physical stores and now also in e-commerce, the carnê—or Buy Now, Pay Later—allows customers to pay in installments without needing a credit card, making it easier and more accessible for many families to shop at Magalu.
• Magalu Insurance: MagaluBank also offers a range of insurance products for our customers. Options include extended warranty—allowing customers to extend coverage on purchased products—life insurance, accidental damage protection, and job loss insurance. In addition to providing greater security and peace of mind for users, these services also play a strategic role in monetizing the Magalu ecosystem, strengthening revenue generation and increasing the added value delivered to customers and partners.

3. Magalu Cloud: Technology to Scale Businesses

Magalu As a Service is a robust platform that delivers innovative technology solutions for businesses of all sizes, enabling them to scale quickly and efficiently. By integrating a range of tools and services that connect and transform the digital ecosystem, the platform aims to democratize access to cutting-edge technology—previously available only to large enterprises—making it accessible and viable for small and medium-sized businesses. Our goal is to offer high added value at more competitive costs, empowering companies across various sectors to adopt best-in-class practices and optimize their operations with the trust and expertise of one of Brazil's leading companies.

A key highlight of the platform is Magalu Cloud, the only 100% Brazilian cloud solution, designed to provide robust infrastructure, affordable pricing, and billing in local currency—ensuring financial predictability without the impact of exchange rate fluctuations.

With high performance, hyperscale capability, low latency, secure storage, cloud computing, and seamless system integration, Magalu Cloud supports large volumes of transactions and data, enabling companies to scale their operations with flexibility and security.

Magalu Cloud Differentials:

• Affordable Cost and Predictable Billing: A competitive alternative to foreign cloud providers, offering more attractive pricing and billing in Brazilian reais.
• Scalable, Secure, Low-Latency Infrastructure: Designed to meet fluctuating market demands without compromising performance, ensuring fast response times and advanced protection for sensitive data and financial transactions.
• Personalized and Direct Support: Technical support in Portuguese, with no automated intermediaries—ensuring fast, efficient issue resolution and a more humanized customer experience.

With this combination of advanced technology, hyperscale capacity, security, and personalized support, Magalu Cloud stands out as the best choice for companies looking to grow efficiently in the digital environment.

4. MagaluAds: Monetizing Magalu's Audience

MagaluAds is one of the strategic pillars of our ecosystem, leveraging the vast audience across Magalu's platforms—such as Magalu, Netshoes, Época Cosméticos, Canaltech, Jovem Nerd, and other key content assets. With nearly 500 million monthly views and 36 million monthly active users on our apps, MagaluAds turns our audience into one of the most valuable media assets in Brazil, creating a powerful and highly targeted advertising platform.

In addition, our virtual influencer Lu, with 20 million followers on social media, has become a major asset in driving further monetization. Already featured in campaigns like Burger King's and in talks with other major brands, Lu exemplifies the monetization potential of our audience and our ability to generate meaningful content for advertisers.