Apparel and Footwear Specialist Retailers in Mexico

PROSPECTS

Growth continues due to the expansion of shopping centres

Apparel and footwear specialist retailers continued to see strong current value growth in 2019. This was partly due to the continued increase in the number of outlets.

Continued investment and moving with consumer demands

The main competitors within apparel and footwear specialist retailers are expected to continue to invest in the opening of new outlets over the forecast period, which will lead to current value growth at a similar level to that seen in the review period. One possible threat to players’ expansion plans could be an increase in the exchange rate of the Mexican peso against the US dollar, which might lead companies to slow down their investment.

Most consumers prefer shopping in stores, but a website remains important

Most apparel and footwear specialist retailers have launched online stores, with recent additions including H&M and Flexi, which launched e-commerce operations for Mexico, as did Old Navy, via a partnership with MercadoLibre, with an official store front on the platform. However, sales of apparel and footwear through e-commerce still represent a small proportion of their total sales.

COMPETITIVE LANDSCAPE

Domestic player Coppel has the strongest presence in the country

Coppel maintained its lead in apparel and footwear specialist retailers in value terms in 2019, and continued to increase its share. By the end of the review period Coppel operated over 470 Coppel Canada footwear retail outlets, and had a presence across the country.

Inditex’s brands register rapid growth, and other players invest online

Mexico is the most important market within Latin America for Inditex, Industria de Diseño Textil, and the fifth globally. Despite the uncertainty during the year, all the company’s brands saw positive performances in 2019, helping Mexico to remain its leading Latin American country.

Gap continues to grow thanks to its partnership with Liverpool

Mexico has become an important market for Gap, along with other global apparel retailers. Mexico is one of relatively few markets where Gap is enjoying a good performance and continues to open stores.

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