Sometimes it feels like Amazon is taking over the world—or, at the very least, the world of retail. In providing fast, free shipping, operating from a customer-centric philosophy and swallowing up specialized retailers, Amazon has, by some estimates, put itself on track to capture 49 percent of the U.S. ecommerce market this year.
But Amazon’s seemingly airtight strategy doesn’t always translate overseas. The same is true of its nearest competitor, Walmart, which is America’s biggest physical retailer. In some markets, it’s local players rather than these two retail behemoths that have the advantage, due to factors ranging from cultural nuances to the lack of credit card use.
Magazine Luiza, or Magalu, is a 61-year-old retailer based in São Paulo, Brazil, that began as a purveyor of color TVs and has…