BRAZIL · BUSINESS
Key Facts
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
- What is happening Retailer Magazine Luiza (Magalu) says its October store sales rose 16% as rival Casas Bahia shrinks.
- Why it matters Casas Bahia, a furniture and appliance chain, closed about 300 stores and is in court-supervised restructuring.
- The numbers Magalu says its online sales from its own stock rose 14% in October.
- What to watch Casas Bahia postponed its third-quarter results from Wednesday 11 November to Thursday 10 December.
Casas Bahia, a Brazilian furniture and appliance chain, is in restructuring and closing stores. Rival Magalu says shoppers are moving to its shops.
One of Brazil’s best-known furniture and appliance chains is shrinking, and a main rival says it is collecting the customers. Magazine Luiza, known as Magalu, said on Monday 9 November that its October store sales rose 16% from a year earlier.
Casas Bahia, the shrinking chain, is in court-supervised restructuring after a second-quarter loss of about 10 billion reais (about US$1.8 billion). Its shares trade in São Paulo as BHIA3, and Magalu’s as MGLU3.
Reais are converted here at the PTAX rate, the Central Bank of Brazil’s official daily dollar rate, of 5.5146 per US dollar on 9 November. We did not confirm any US-listed share certificate for either company.
What Magalu Reported
Magalu said physical-store sales grew 16% in October, after 12% in September and an average of 8% from January to August. Online sales of goods from its own stock rose 14% in October, according to the company.
Why Casas Bahia Is Shrinking
Casas Bahia (formally Grupo Casas Bahia) disclosed on Sunday 16 August 2026 that it had filed for judicial recovery, Brazil’s court-supervised protection from creditors. Our earlier reports show a São Paulo court has since moved the case ahead.
The group has closed close to 300 stores since August, and its second-quarter loss was about 10 billion reais. The company has said it needs more time to prepare its third-quarter accounts.
Our earlier reports on the court accepting the case and the shareholder vote give the background. A separate report covers the retailer’s cash held in court.
Who Captures the Demand
Shoppers who lose a local Casas Bahia still need a sofa or a fridge. Magalu links part of its improvement to rivals leaving the market, though it has not split the gain by cause.
Other chains and online marketplaces compete for the same buyers. The 16% rise is Magalu’s own early figure for one month, so a longer run is needed to show a lasting shift.
What It Means for US Readers
Both stocks trade in São Paulo, and we did not confirm any US-listed ADR (a US-traded certificate for foreign shares). Funds that hold Brazilian retailers should watch the 10 December Casas Bahia accounts and Magalu’s next monthly sales update.
Investors in suppliers and landlords tied to Casas Bahia face the sharpest risk, because court protection limits how fast creditors can collect while the process runs. Sustained store growth at Magalu would be the clearest sign that demand is moving, not vanishing.
More is on the Brazil hub, with guides to who runs the economy and who holds power. Shoppers can follow the retail story in São Paulo, Brazil’s largest city.
What Is Not Known
We could not open the company filings directly, so the October figures are Magalu’s own and are not independently confirmed. Casas Bahia has not published its October sales.
It is not known whether Casas Bahia will close more stores, or what its restructuring plan will offer creditors. Magalu has not said how much of its October growth is lasting.
Frequently Asked Questions
Is Casas Bahia in bankruptcy?
It disclosed a judicial recovery filing, Brazil’s court-supervised protection from creditors, on 16 August 2026. That process is comparable to Chapter 11 in the United States, not to liquidation.
Who is winning Casas Bahia’s customers?
Magazine Luiza says its store sales rose 16% in October and its online sales from own stock rose 14%. Those are the company’s own figures, not independent data.
When does Casas Bahia report its next results?
It moved its third-quarter results from 11 November to 10 December 2026. The company says it needs more time to prepare its accounts.
Sources: Magazine Luiza (Magalu), results release and monthly sales update of 9 November 2026, investor relations; Grupo Casas Bahia, notices to the market, investor relations; Brazil securities regulator (CVM) filings; Central Bank of Brazil, PTAX exchange rate (5.5146 reais per US dollar, 9 November 2026).
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
Brazil runoff, Sunday, October 25: Brazil runoff start time and results schedule. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.