Department Store Market in Mexico 2016-2020

Overview of the department store market in Mexico

Technavio’s market research analyst have predicted the department store market in Mexico to grow at an impressive CAGR of close to 13% over the forecast period. With increasing sales through store-based credit cards, the market for department stores in Mexico is anticipated to have a positive outlook in the coming years. Most department stores offer more lucrative deals through their credit cards than bank credit cards. The deals include better discounts, easier instalment payment options, and interest-free purchases. Moreover, these stores also maintain customer information such as frequency of shopping, buying patterns, and store visits to offer credit options better suited to customer requirements, which will bolster the growth prospects for this market in the coming years.

The increasing demand for private-label brands is one of the emerging trends expected to drive this market’s growth over the predicted period. For instance, Grupo Sanborns, a leading department store operator in Mexico launched a number of private-label fashion brands through its Sears chain of stores to increase sales and offer unique products to customers. Also, these brands are launched exclusively for shoppers at Sears stores and are not available in other stores of Grupo Sanborns. Such private label brands also help companies to try new product launches online before selling them offline as selling online is cost-effective for the company.

Product segmentation and analysis of the department store market in Mexico

• Apparel, footwear, and accessories
• Consumer electronics and electricals
• Home furniture and furnishings

The apparel, footwear, and accessories segment dominated the market and is envisaged to account for more than 47% of the market share in terms of revenue. The majority of department retailers in the country advertise clothing lines through electronic and print media and social media platforms. Moreover, retailers offer a broad range of apparel brands through their online portals which will contribute to this segment’s growth over the next four years.

Competitive landscape and key vendors

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.

The leading vendors in the market are -

• Coppel
• Grupo Elektra
• Grupo Palacio de Hierro
• Grupo Sanborns
• Liverpool
• Suburbia

Other prominent vendors in the market include American Eagle Outfitters, Best Buy, Costco de México, Forever 21, Grupo Famsa, H&M, and Zara.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the department store market in Mexico?
• What are the key market trends impacting the growth of the department store market in Mexico?
• 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 vendors in the department store market in Mexico?
• What are the trending factors influencing the market shares of Mexico?
• What are the key outcomes of the five forces analysis of the department store market in Mexico?

Technavio also offers customization on reports based on specific client requirement.

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