Department store: Key market research findings
- Store credit cards are getting more traction in the market
- Foot, apparel and accessories segment accounts for the majority share of the market
- Key vendors—Coppel, Grupo Elektra, Grupo Palacio de Hierro, Grupo Sanborns, Liverpool, and Suburbia
Technavio’s market research analysts estimate the department store market in Mexico to grow at a CAGR of almost 13% between 2016 and 2020. The market is primarily driven by the increase in sales through store credit cards. Department stores offer more lucrative deals through their own credit cards with greater discounts, easier installment payment options, and interest-free purchases. Customer information regarding consumer behavior such as frequency of shopping, purchase patterns, and store visits are also maintained so as to offer credit options better-suited to customer requirements and thus further their market penetration. At present, the department store market is dominated by the metropolitan area close to Mexico City which holds almost 30% of the malls in the country. The southeast, northeast, and northwest of the country are emerging as important regions for department stores. These three regions together accounted for 32% of the overall market in 2015.
The new market research report from Technavio presents a breakdown and analysis of the department store segments by product category.
“The growth in the e-commerce industry is the latest trend in the market. In 2015, e-commerce accounted to almost 4% of the revenue from the retail industry. The potential growth in e-commerce is encouraging department stores in Mexico to increase their investments in this retail format. The online sales of these department stores is showcasing a significant growth in the market,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
In 2015, the apparel, footwear and accessories segment dominated the department store market in Mexico by accounting for almost 46% of the overall market share. The exploitation of print, electronic, and social media platforms for advertising and campaigns is the driving force behind the growth of this segment. Such marketing initiatives are helping retailers acquire a vast customer base. Furthermore, retailers are also offering a wide range of apparel brands through their online portals at prices lower than those being offered by economy brands offline.
The key vendors in the department store market in Mexico include Coppel, Grupo Elektra, Grupo Palacio de Hierro, Grupo Sanborns, Liverpool, and Suburbia. The department store market in Mexico is highly competitive due to the presence of both national and international suppliers. The regional providers are increasingly partnering with international brands to compete with the global fashion retailers entering the Mexico market.
A more detailed analysis is available in the Technavio report, Department Store Market in Mexico 206-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
