SAN JOSE, Calif. and SÃO PAULO, Brazil, Oct. 13, 2016 (GLOBE NEWSWIRE) -- Apigee , the API company, and Magazine Luiza , one of Brazil’s largest consumer electronics companies, today revealed that the retailer’s recently announced growth has been fueled by its five-year digital transformation strategy, a strategy powered by APIs and Apigee. Magazine Luiza, which began working with Apigee in 2014 as part of its digital transformation strategy, recently reported a 4.8 percent increase in gross sales, with e-commerce sales rising 33.6 percent and now accounting for 22.5 percent of total sales for the company. The company also achieved 28.9 percent EBITDA growth over the same period last year.
“Magazine Luiza is a great example of Brazilian innovation and ingenuity, and we are proud to be a part of their digital transformation and success,” said Chet Kapoor, Apigee CEO. “We hope that they can serve as a model for other businesses in Brazil and throughout the world who are embracing APIs and digital business.”
Magazine Luiza sells consumer goods, including household appliances, electronics, furniture, cosmetics, baby care accessories, toys and sports equipment, online and through more than 750 retail stores across the country. The company is leveraging APIs and Apigee as it rebuilds and modernizes its core digital infrastructure, focusing on mobile and e-commerce platforms, logistics, order management and strategic marketplace initiatives.
Part of the company’s growth is a result of CEO Frederico Trajano and the management team’s strategy to become increasingly more digital, multichannel and closer to customers. Frederico took over in November 2015 with the long-term objective of converting Magazine Luiza into a digital company with physical points of sale, rather than a traditional retailer with a strong digital presence.
“Retailers must adapt to the changing landscape of digital commerce,” said Trajano. “Amid uncertain economic times, Magazine Luiza made a commitment to digital transformation and chose Apigee as our key technology provider. We believe our commitment to delivering a modern digital experience is paying off with an increase in Magazine Luiza growth and a reduction to our working capital.”
Digitizing the store experience through APIs has led to operational cost containment and has enabled Magazine Luiza to expand hiring and job training efforts. By the end of the year, the company plans to train all in-store employees to use smartphones as sales tools, and more than half its stores will allow consumers to order goods online and pick them up from a retail location. The company continues to further integrate its online assets with its physical stores in order to provide an advantage over e-commerce-only companies.
In June, 2016, the company leveraged Apigee software to launch a new digital marketplace, which enables other retailers to sell third-party products through MagazineLuiza.com.br . Through the marketplace, Magazine Luiza is increasing the number of product categories it offers while minimizing inventory risks and delivery costs.
Additionally, the company's Magazine Voce (translating to ‘Magazine You’) platform is helping accelerate digital innovation in retail while providing all Brazilians access to participate in the growing e-commerce market. Magazine Voce enables individuals to sell services and products to customers across the country via new channels, connecting the nation online through APIs and Apigee. Inspiring digital entrepreneurs in Brazil, the social commerce marketplace enables vendors to manage sales, commission reports, incentive programs, email marketing, shipping, and more through Magazine Luiza.
“Magazine Luiza shows that having leadership with the fortitude to invest in a digital vision, even in tough economic times, can truly pay off,” said John Rethans, global digital strategist at Apigee. “To see this digital transformation take hold and empower individuals across an emerging economy illustrates that APIs and the strategies Apigee helps enable can help prepare companies of many kinds for the future.”
The Apigee Edge platform delivers comprehensive API management capabilities that can empower organizations like Magazine Luiza to securely deliver and manage APIs and API traffic at scale. Apigee Edge includes an API gateway; developer portal; API, app and developer analytics; API monetization features; support for high scale, and more. About Apigee Apigee® (NASDAQ: APIC ) provides a leading API platform. Many of the world's largest organizations select Apigee to enable their digital business. Apigee customers include global enterprises such as Walgreens, Burberry, Morningstar, and First Data. Apigee is headquartered in San Jose, California.
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About Magazine Luiza Founded in 1957 in the city of Franca, São Paulo, Magazine Luiza is one of the largest furniture and electronic retailers in Brazil. The company operates 787 stores and employs 20,000 people nationwide. In January of 2016, Frederico Trajano took over as company´s CEO. The Board of Directors is chaired by Luiza Helena Trajano, and Marcelo Silva serves as vice president.
Safe Harbor Statement This press release contains forward-looking statements, including statements regarding the continued customer adoption and increased usage of Apigee’s products, expected market adoption of digital transformations, potential future customer opportunities and opportunities between Apigee and Magazine Luiza and the potential future impact and benefits to customers of using them. These forward-looking statements are based on current expectations and are subject to inherent uncertainties, risks and changes in circumstances that are difficult or impossible to predict. Consequently, you should not rely on these forward-looking statements. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such uncertainties, risks and changes in circumstances, including without limitation risks and uncertainties related to market adoption of digital technologies, the ability of Apigee’s software to meet its customers’ needs, the quality of Apigee’s software, support and services and related infrastructure capacity and any incorrect implementation or use of Apigee software.
The foregoing list of factors is not exclusive. Additional risks and uncertainties that could affect Apigee’s financial and operating results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in Apigee’s Annual Report on Form 10-K filed with the SEC on October 7, 2016. Apigee’s SEC filings are available on the Investor Relations section of the Company’s website at http://investors.apigee.com and on the SEC's website at www.sec.gov.
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Apigee Media Contact: Lyla Rayyan press@apigee.com 415-275-6249 Apigee Media Contact: Kevin Faulkner ir@apigee.com 408-816-1658
