Mexico’s retail scene is on the rise, and the growth opportunities are drawing fashion brands from the UK and Europe
The retail market of Mexico’s has traditionally been eclipsed by its star-spangled neighbor to the north. However, the country’s retail sales are growing steadily and, combined with cultural similarities between the country and the US, this makes it a relatively easy target for international expansion.
The Growing Mexican Market
Research firm GlobalData predicts that overall retail expenditure in Mexico will grow by 29% to reach £285bn between now and 2022. Clothing and footwear expenditure is forecast to grow by 45% to £27bn – driven by a 167% rise in online sales
Accordingly, British brands are building up a strong presence in the country. Ted Baker, Karen Millen, and AllSaints have all expanded into the market through license and franchise partnerships. Although Ted Baker and AllSaints have entered the market more recently, Karen Millen has operated in Mexico for five years and has 13 points of sale across the country.
Several factors make Mexico an appealing destination for brands in the UK and Europe, says Maureen Hinton, global retail research director at GlobalData: “Mexico has a lot to offer retailers – a large and growing population, increasing personal wealth, urbanization, growing economy, and more stability than many other Latin American countries, with an increasing demand for retail.”
BY HARRIET BROWN