After dedicating ten years to building an ecosystem centered around online sales, Magazine Luiza, a major Brazilian retail group controlled by the Trajano family, announced its decision to return to its roots by reopening physical stores. This announcement was made during a conference call on the results of the fourth quarter, highlighting the group's plans to launch new retail locations in the second half of the year, marking a shift after several years of stagnation in opening new stores.

The company recently opened the Magalu Gallery in December along São Paulo's prestigious Avenida Paulista, showcasing its diverse business portfolio including Magalu, Netshoes, Época Cosméticos, Kabum!, and Estante Virtual. The gallery serves as a hub, incorporating several businesses under one roof, alongside a Youtube theater and a café. Currently, Magazine Luiza operates a total of 1,246 stores, signifying the group's continued commitment to physical retail despite the digital focus.

The shift in focus comes as the digital segment's contribution to total sales for Magazine Luiza declined from 70.6% in 2024 to 68.5% in 2025, reflecting a broader trend where e-commerce sales dropped by 3.9% last year, while physical store sales saw a growth of 5.9%. The group's strategy involves reallocating a larger portion of capital expenditure (capex) to support physical store openings, indicating a significant pivot in their retail strategy to adapt to changing consumer buying habits.