About the Department Store Market in Mexico
The Mexican organized retail sector includes three different retail formats: department stores, specialized stores, and supermarkets. A wide range of products are sold in department stores, and these products broadly fall under one of these categories:apparel, footwear, and accessories; consumer electronics and electricals; home furniture and furnishings; and other products. The other products include beauty and personal care products; books, gifts, and stationery products; home care products; music, video, and entertainment software; and sports and leisure equipment. The sheer consumption potential of Mexico has resulted in the country gaining the interest of retailers worldwide. Within the organized retail space, department stores in particular have received the attention of global heavyweights such as Wal-Mart and the home grown Liverpool and Grupo Carso.
Technavio’s analysts forecast the department store market in Mexico to grow at a CAGR of 12.74% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the department store market in Mexico for 2016-2020. To calculate the market size, the report considers the revenue generated from the retail sales of products to individual customers in Mexico.On the basis of retail format, the organized retail sector in Mexico is segmented into:
Technavio Announces the Publication of its Research Report – Department Store Market in Mexico 2016-2020
Technavio recognizes the following companies as the key players in the department store market in Mexico: Coppel, Grupo Elektra, Grupo Palacio de Hierro, Grupo Sanborns, Liverpool (El Puerto de Liverpool), and Suburbia.
Other Prominent Vendors in the market are: American Eagle Outfitters, Best Buy, Costco de México, Forever 21, Grupo Famsa, H&M, and Zara.
Commenting on the report, an analyst from Technavio’s team said: “A trend that is positively impacting the market is the growth in e-commerce. E-commerce accounted for 3.5% of the revenue in the retail industry in Mexico in 2015. In comparison, the e-commerce sector in the US accounted for 8% of the country's retail industry. The potential for the growth of e-commerce is higher in Mexico than in the US, as the e-commerce market in Mexico has grown at a CAGR of close to 40% in the last five years, whereas it was close to 15% in the US.”
According to the report, a key growth driver is the growth of the middle-income class in Mexico. The middle-income class is considered the primary mass target audience for the retail industry. A large portion of organized retail revenue comes from this population segment, due mostly to its large size. This group has also grown faster than the higher-income class in the country. The C and C-/D+ middle-income classes in Mexico grew from 48% of the total population in 2000 to 52.6% of the total population in 2011. The higher-income class (A/B and C+) grew from 19% of the total population in 2000 to 21% of the total population in 2011.
Further, the report states that one challenge that could hamper market growth is competition from supermarkets such as Walmex.
Coppel, Grupo Elektra, Grupo Palacio de Hierro, Grupo Sanborns, Liverpool (El Puerto de Liverpool), Suburbia, American Eagle Outfitters, Best Buy, Costco de México, Forever 21, Grupo Famsa, H&M, Zara.
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