Magalu expands its distribution area



Magazine Luiza began operating at the end of the year its largest distribution centre in Guarulhos (SP). With 100,000 sq meters, it began to be planned about three years ago to meet the company's increasing demand. With this and other units opened in 2021, Magalu's storage capacity grew by 30% in the year. In December, the company reached 21 Distribution Centres and 1 million sq metres of storage area. Considering the stores, by 2023, the company expects to have 2 million sq metres in total.


The opening at the end of a year is considered particularly difficult for retailers. After solid digital sales growth in 2020, the performance in 2021 faced the impact of the end of emergency aid, high inflation, and the continuation of bad employment and income indicators. The trading of shares of these companies on the Stock Exchange mirrored these problems. Magalu ended the year with the worst performance on the Ibovespa, the main indicator of B3, with a drop of 71%.


Investment in storage in Guarulhos looks ahead. Built to give the company a break, the Guarulhos DC currently uses around 40% of its storage capacity and 15% of its shipping capacity; around 8 thousand to 12 thousand orders are shipped daily.