Magazine Luiza concludes beloved service and issues official statementThe announcement of the closure of Magazine Luiza’s vital service, with an estimated cost of R$160 million, is a major event in the business world.
The vital service, which offered customers a wide range of benefits and conveniences, will be discontinued, impacting not only the company but also its regular consumers, who now face the prospect of seeking alternatives to meet their needs and expectations.
Magazine Luiza is one of the largest retailers in Brazil (Reproduction: Internet)In August 2023, Magazine Luiza, one of the leading retailers in the country in the home appliances and household goods sector, announced the closure of two vital points in its network.
This announcement marked the end of the activities of two distribution centers located in the Southern region of Brazil, which played a crucial role in the company’s business.
The operation began between March and April 2023 in the Southern region and later extended to the Northeast, between June and July of the same year.
Official statementAccording to information released by the Valor Econômico portal, Magazine Luiza officially communicated that the closure of part of its operations is due to “adjustments in the company’s capacity.”
This explanation was provided by Roberto Belissimo, the company’s financial director and investor relations officer.The company closed the so-called “cross dockings,” smaller storage centers that served as points for product passage and quick distribution, but did not disclose the exact number of units that were closed that provided this service.
Magazine Luiza store (Photo: Reproduction / Internet)According to the same portal, in the quarter, Magazine Luiza highlighted in its balance sheet the renegotiation of contracts, optimization of investments in marketing and logistics, and adjustments in operational capacity.
How much did Magazine Luiza spend?Furthermore, the company reported in its financial statement that the expenses related to restructuring and integration in the second quarter of 2023 were of a non-recurring nature, some of which were related to the closure of centers.
The total of these expenses was R$160 million in the period from April to June.
