Case | HBS Case Collection | October 2005 (Revised December 2006)

Magazine Luiza: Building a Retail Model of "Courting the Poor"

by Frances X. Frei and Ricardo Reisen de Pinho

Abstract

Describes the innovative retail model of the Brazilian firm Magazine Luiza. Magazine Luiza enables low-income consumer credit by applying a flexible and nuanced evaluation system. Additionally, its dedication to customer service, employee motivation, and progressive use of technology have driven its success and expansion.

Keywords: Motivation and Incentives; Information Technology; Income Characteristics; Innovation and Management; Success; Customer Focus and Relationships; Credit; Retail Industry; Brazil;

Citation:

Frei, Frances X., and Ricardo Reisen de Pinho. Magazine Luiza: Building a Retail Model of "Courting the Poor". Harvard Business School Case 606-048, October 2005. (Revised December 2006.)