Magazine Luiza grows 32% and will gain another 50 stores
Valor Econômico
Neither the restriction in the offer of credit, resulting from the recent initiative of the Central Bank to increase the levels of compulsory deposit, nor the possible increase of the basic interest rate (Selic) in 2011, are capable of undermining the growth of the market of furniture and electric and electronic products next year, in the opinion of the Superintendent of the Magazine Luiza, Marcelo Silva. "More important than the Selic rate is the employment rate. That is what matters to keep the consumer confidence in the economy", says the Executive who plans opening 20 stores in 2011, compared to the 27 inaugurated this year.
One third of new points of sale (17) should be open in the Metropolitan Region of São Paulo and most of the others, in the Northeast, where the company landed at the end of July, with the purchase of Maia, a Paraiba-based chain of stores. The sales this year will grow 32%, to R$ 5 billion (US$ 2.94 billion), considering only Magazine Luiza. With the Maia chain (whose numbers will be accounted as of August), the sales increase to R$ 5.3 billion (US$ 3.1 billion) this year. "For 2011, we believe the sales of Luiza should grow 20% and Maia's, 50%", says Silva. Today, they are 611 stores in 16 States. According to the Executive, the goal is to prepare Magazine to go public until June. "We will use the resources to finance the expansion", says Silva, without disclosing the slice of the company that will be put for sale. The plan is to wind up 2015 with one thousand stores. Currently, 12% of the shares of the chain, controlled by the Trajano family, belong to the private equity fund Capital Group.
Today will be open the second concept store of the chain at Marginal Tietê, North side of São Paulo. In the same address is also located the new Business Office of Magazine Luiza, where all directors and nearly 300 employees who lived in Franca (SP), city that's still officially the company headquarters, were transferred to. "But all the decisions are now taken here in São Paulo", says the President of the chain, Luiza Helena Trajano. Franca stayed with the areas of supporting such as human resources, technology and accounting. "There, we will implement a call and client assistance center, with 400 attendance clerks", says Luiza.