Amazon and Shopee Partnerships Drive Turnaround at Brazil Retailer

Global e-commerce giants are rewriting the rules of customer acquisition as the cost of digital advertising climbs. Instead of spending billions to fight for the same online shoppers, major platforms are increasingly choosing to share their audiences. This shift in digital retail strategy is now driving a major corporate turnaround in Latin America's largest economy.

Magazine Luiza, widely recognized as one of Brazil's largest retailers, is executing a dramatic strategic pivot. On October 15, 2026, the company announced a landmark partnership to sell its inventory directly on Shopee, the Southeast Asian e-commerce giant that attracts 90 million monthly visitors in Brazil. The move marks Magazine Luiza's third major marketplace alliance in 2026, following similar integration deals with Amazon in June and Mercado Livre in September.

The partnerships represent a fundamental shift for the Brazilian retail pioneer, which has suffered from extreme stock volatility over the past decade due to high domestic interest rates. Rather than burning cash on paid media to lure shoppers to its own app, Magazine Luiza is placing its physical inventory—ranging from heavy home appliances to KaBuM! gaming gear—directly inside its rivals' storefronts. Company executives expect that more than 75% of the shoppers buying its products on these partner platforms will be entirely new customers.

Crucially, the retailer is maintaining control of its logistics. All orders placed through Amazon, Shopee, and Mercado Livre will be delivered by Magalog, Magazine Luiza’s independent logistics arm. This arrangement allows the company to increase its route density and lower overall shipping costs. The strategy is already showing up in the balance sheet: in its Q2 2026 earnings report on August 7, 2026, the company posted an EBITDA of R$ 709 million. During the quarter, the company deliberately softened its direct online sales to protect gross margins, which successfully expanded to 30.6%.

The financial sector has taken notice of the operational shift and the changing macroeconomic landscape. Analysts note that the retailer is highly sensitive to interest rates, and any future monetary easing by the Central Bank of Brazil will disproportionately lower its debt servicing costs while boosting consumer credit.

In your brokerage app

For investors using US brokerage accounts like Fidelity, Charles Schwab, or Robinhood, this retail turnaround is accessible through Magazine Luiza S.A.. The company's American Depositary Receipts trade over-the-counter in New York under the ticker MGLUY. Additionally, global investors seeking diversified exposure to the broader Brazilian consumer and retail sector can look to the iShares MSCI Brazil ETF (EWZ), which holds a basket of the country's largest publicly traded enterprises.