Apparel and Footwear Specialist Retailers in Uruguay

PROSPECTS

Apparel and footwear specialist retailers sees falling value sales in 2019 as cautious consumers limit their purchases

After years of steady current value sales growth, apparel and footwear specialist retailers experienced a decline in value sales in 2019. According to industry sources, the profit margins of apparel and footwear specialist retailers are also declining with costs rising more rapidly than prices.

Declining tourist numbers in 2019 affecting performance of apparel and footwear specialist retailers

A further factor stifling the performance of the apparel and footwear specialist retailers channel in 2019 is the difficult tourist season in Uruguay, during which the number of international visitors has declined. In particular, currency fluctuations in Argentina convinced many travellers from that country to stay home rather than spend their holidays in Uruguay.

Apparel and footwear specialist retailers anticipate channel to rebound in line with brightening economic climate

It is anticipated that the current sluggishness of the Uruguayan economy will shift over the forecast period with a return to sustained growth. In line with the improving economy, it is projected that the apparel and footwear specialist retailers channel will again see steady value sales growth and companies will recover their profit margins.

COMPETITIVE LANDSCAPE

Chic Parisien remains strong leader and focuses on brand evolution

In 2019, Chic Parisien, with its popular Indian and Parisien brands, maintains the leadership position in the apparel and footwear specialist retailers channel that it has enjoyed for many years. In terms of value sales, the domestic retailer continues to surpass international companies that have entered Uruguay over recent years.

Recently arrived international behemoth H&M continues to try to drive changes in buying habits

The international fast fashion brand H&M arrived in Uruguay at the end of 2018. One of the biggest retailers in apparel and footwear, H&M operates thousands of outlets worldwide.

International players continue to be attracted by Uruguay despite economic slowdown

In spite of the country’s current economic slowdown, Uruguay remains attractive to international players due to its longer-term potential. Many international companies, such as Gap and Only, have entered the country’s apparel and footwear specialist retailers channel in recent years, and other brands such as Top Shop are negotiating to enter the channel.

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