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Department Store Market in Mexico 2016-2020

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:

  • Department stores
  • Specialized stores
  • Supermarkets
Technavio's report, Department Store Market in Mexico 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Coppel, Grupo Elektra
  • Grupo Palacio de Hierro
  • Grupo Sanborns
  • Liverpool (El Puerto de Liverpool)
  • Suburbia
Other prominent vendors
  • American Eagle Outfitters
  • Best Buy
  • Costco de México
  • Forever 21
  • Grupo Famsa
  • H&M
  • Zara
Market driver
  • Growth of middle-income class
  • For a full, detailed list, view our report
Market challenge
  • Competition from supermarkets
  • For a full, detailed list, view our report
Market trend
  • Growth in e-commerce
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

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.

Companies Mentioned

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.

  • Executive summary
    • Highlights
      • Table Differentiating factors of market
      • Table Consumer insights
      • Table Market opportunity
      • Table Criteria for brands to select a particular department store retailer
      • Table Merchandising management
  • Scope of the report
    • Market overview
    • Top-vendor offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Country profile: Mexico
    • Economic indicators
      • Table Mexico: Key economic indicators 2014
      • Table Population in Mexico 2009-2014 (millions)
      • Table GDP per capita in Mexico 2009-2014 ($)
      • Table Employment-to-population ratio in Mexico 2009-2014
      • Table Internet penetration rate in Mexico 2009-2014
      • Table Mobile subscriptions rate in Mexico 2009-2014
  • Market landscape
    • Market overview
      • Table Retail market in Mexico 2015-2020 ($ billions)
      • Table Organized retail versus traditional retail in Mexico 2015 and 2020
      • Table Organized retail versus traditional retail in Mexico 2012-2015 ($ billions)
      • Table Organized retail versus traditional retail in Mexico 2012-2015 (% of total retail)
      • Table Organized retail versus traditional retail in Mexico 2015-2020 ($ billions)
      • Table Organized retail versus traditional retail in Mexico 2015-2020 (% of total retail)
      • Table Traditional retail market in Mexico 2015-2020 ($ billions)
      • Table Organized retail market in Mexico 2015-2020 ($ billions)
      • Table Market leadership positions of retailers
      • Table Segmentation of organized retail by total number of stores 2015
      • Table Segmentation of organized retail by revenue in 2015
      • Table Segmentation of organized retail by retail space 2015 (% of square feet)
      • Table Segmentation of organized retail by employment 2015 (% of total employees)
    • Market size and forecast
      • Table Department store market in Mexico 2015-2020 ($ billions)
      • Table E-commerce CAGR comparison between Mexico and the US (2010-2015)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by product category
    • Department store market in Mexico by product category
      • Table Department store market in Mexico by product category
      • Table Department store market in Mexico by product category 2015 and 2020
      • Table Department store market in Mexico by product category 2015-2020 ($ billions)
    • Apparel, footwear, and accessories
      • Table Apparel, footwear, and accessories sales through department stores in Mexico 2015-2020 ($ billions)
    • Consumer electronics and electricals
      • Table Consumer electronics and electricals sales via department stores in Mexico 2015-2020 ($ billions)
    • Home furniture and furnishings
      • Table Home furniture and furnishings sales via department stores in Mexico 2015-2020 ($ billions)
    • Other products
      • Table Other products sales via department stores in Mexico 2015-2020 ($ billions)
  • Geographical segmentation
    • Table Geographical segmentation of market by revenue 2015 (% of total revenue)
  • Market drivers
    • Growth of middle-income class
      • Table Income levels of socioeconomic classes in Mexico 2011 ($)
      • Table Socioeconomic classes as % of total population in Mexico 2000 and 2011
    • Increased sales through store credit cards
    • Growing retail real estate
      • Table Shopping mall penetration in Mexico 2015
    • Reduction in tariffs on imported products
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Increase in penetration of fast-fashion retailers
    • Competition from supermarkets
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Potential for consumer credit penetration
      • Table Consumer credit to GDP in Mexico in 2013 (% contribution)
    • Growth in e-commerce
      • Table Share of e-commerce in retail revenue in Mexico 2015
      • Table Internet penetration rate in Mexico 2009-2014
      • Table Smartphone penetration rate in Mexico 2015-2020 (% of total mobile phone users)
      • Table Smartphone users in Mexico (millions of people)
    • Social media marketing
      • Table Social media users in Mexico 2015 (% of total Internet users)
      • Table Social media users via smartphone in Mexico 2015 (% of total smartphone users)
    • Increase in demand for private-label brands
    • Celebrity endorsement
      • Table Other factors that impact market growth
  • Vendor landscape
    • Competitive scenario
    • Vendor share analysis
      • Table Key vendors by revenue share 2015
      • Table Market entry strategies implemented by international brands
    • Comparative analysis of key vendors
      • Table Key vendors: Sales per square feet ($ thousands)
      • Table Net margin comparison (2013-2014)
      • Table ROE comparison (2013-2014)
      • Table Equity multiplier comparison (2013-2014)
      • Table Credit sales growth rate comparison (2010-2014)
      • Table Credit card portfolio for interest-free credit cards comparison (2010-2014)
      • Table Credit card generation period comparison (mins)
      • Table Population income-level class penetration comparison (% of total customer base)
      • Table Partnership with international brands
    • Coppel
    • Grupo Elektra
      • Table Grupo Elektra: Business segmentation by revenue 2015
      • Table Grupo Elektra: Business segmentation by revenue 2014 and 2015 ($ billions)
      • Table Grupo Elektra: Geographical segmentation by revenue 2015
    • Grupo Palacio de Hierro
      • Table Grupo Palacio de Hierro: Business segmentation by revenue 2015
      • Table Grupo Palacio de Hierro: Business segmentation by revenue 2014 and 2015 ($ millions)
    • Grupo Sanborns
      • Table Grupo Sanborns: Business segmentation by revenue 2015
      • Table Grupo Sanborns: Business segmentation by revenue 2014 and 2015 ($ millions)
      • Table Sanborns: Revenue by category 2015
      • Table Sears: Revenue by category 2015
    • Liverpool (El Puerto de Liverpool)
      • Table Liverpool: Business segmentation by revenue 2015
      • Table Liverpool: Business segmentation by revenue 2014 and 2015 ($ billions)
    • Suburbia
    • Other prominent vendors
  • Explore Technavio

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