El palacio de hierro store pictures

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*The Mexican member of the IADS, El Palacio de Hierro, is one of the largest in the world by turnover. Founded in 1891 with a store in the centre of Mexico City, the company was the first Public Limited Company in the country’s retail industry. El Palacio de Hierro, owned by Grupo Bal, is also the owner of shopping centres in the country.

Lately, the introduction of experiences to generate traffic and answer customers’ expectations has been key to El Palacio de Hierro’s strategy. Whether it is Polanco, Perisur or their new Coyoacan store, each of them offers something unique, from architectural features (such as Coyoacan’s huge 1,270 square-meter glass dome on the top floor) to product offerings and unprecedented and tailor-made services. Celebrating Mexican history, culture, and art, each store reflects the group’s strategy of offering different designs inspired from their direct environment.

The IADS travelled to Mexico for the CEO mid-year meeting in May 2023, an opportunity to visit the Coyoacan store and the recently refurbished Polanco and Perisur stores.*

Coyoacan store: storytelling and ‘retail-tainment’ at their best

Architecture and design

A year ago, following a US$140m investment, El Palacio de Hierro reopened its Coyoacan store located in the Mitikah shopping mall. The Coyoacan area is Mexico City’s second most visited place in Mexico, thanks to its cultural and historical importance. The Coyoacan store design takes cues from its neighbourhood’s architecture and famous inhabitants such as the actress Dolores del Río, the photographer Gabriel Figueroa, the artist Frida Kahlo, the actor and filmmaker Emilio "El Indio" Fernández, the architect Miguel Ángel de Quevedo Zubieta and the poet Salvador Novo. Spanning 5 floors, each floor is dedicated to a cultural icon. For instance, embroideries from Frida Kahlo's dresses have become reliefs on the ceiling. Also, the typical doorways and facade textures of the Coyoacan area are replicated in the separation of spaces and on the doors. Frida Kahlo’s house’s, Casa Azul mosaics are reinterpreted on the floor of the ground floor atrium. Others are more subtle and show rare and amazing attention to detail: for example, the iron structures separating spaces in the restaurant atrium subtly form the letters of El Palacio de Hierro. The store also includes eighteen murals inspired by Coyoacan and designed by Mexican artists, the most striking being the ones covering the escalators.

Wandering the floors

With a part of the mall still under construction, the store is not fully finalized yet: when finished, it will be 46,000 sqm, an expansion from its current 38,000 sqm surface.

The ground floor gathers the luxury accessories and beauty department. Some displays reproduce the staircase of the home of Dolores del Rio. The atrium gives the feeling of a village and the terrazzo reproduces the Casa Azul house. The luxury department emphasizes quality jewellery and watches with a mix of Mexican and international brands in a space inspired by one of the most renowned cinematographers and directors of Mexican cinema.

The beauty department features the cosmetics brand on the periphery and mass-market brands on the back. More interestingly, Origen (El Palacio de Hierro’s new beauty and wellness space) gathers niche, green and clean brands. Designed to compete with Sephora, the concept was imagined to be able to attract and test new brands. It is independent from the rest of the store but feels fully connected. Not brand-personalized, the space is by essence very flexible and looks luxurious. The space is elegant and modern, reflecting the product and brand curation. It is divided into four categories: clean, vegan, organic, and positive impact. The concept will be rolled out with the same ‘look and feel’ to encourage recognition. A hair studio and nail bar complete the space. Also, Sisley opened their first spa in LATAM in the space.

El Palacio de Hierro’s ambition is to be the leader in niche fragrances. The perfume department features palm trees replicas and is inspired by Mexican actress Lolita. The space combines California landscapes with Mexican architecture with simple white displays and mirrored details. A concierge to advise customers is available close to this section.

A ’Hello Yellow’ section completes the ground floor. The space is offering a selection of yellow products anchored to El Palacio de Hierro’s identity. Overall, a lot of effort is put into storytelling.

The first floor gathers women and kids categories. The women’s department has an elegant and modern feel, with florals, geometric patterns, and silver and gold details. From casual wear to a space dedicated to special occasion dresses, the department’s ambition is to serve every need. The space beautifully mimics cobblestone streets as well as colonial houses, and also integrates coffee shops serving as transitions between the escalators and the shoe section. Personal shopping services are connected to the elevator for easy access. With a very homey feeling, the fitting rooms are not far and can be privatized for VIPs.

Vibrant colours, geometric patterns, and flowers fill the children’s department which was inspired by the Casa Azul house. In a creative and playful environment, kids are guaranteed to be entertained in this space which also features the Kids Lab and Candy Shop. The Kids Lab is a fun hair salon which includes toys to keep children entertained. Kids up to 16 years old can have their hair or nails done with non-toxic dyes and accessories. Next to the hair salon which is cleverly located, visitors will find the Candy Shop. Here, kids and adults alike can indulge in candy, pastries, chocolates, ice cream, and more.

With a sophisticated, sleek aesthetic, and the use of wood and darker colours, the second floor is the home for men’s shopping and entertainment. The floor gathers a dynamic selection of RTW brands (including casual and formal wear but also a multi-brand store dedicated to Mexican brands) and men’s shoes with a very smooth transition between sneakers and formal offerings. In the shoe section, cleaning and maintenance services for sneakers and other footwear are available to shoppers: professionals can diagnose shoes and have them look brand new in two weeks.

Entertainment and services are at their best with a bookstore (including notebooks, travel gadgets, stationery and fun objects) and a barber shop with traditional aesthetics such as wooden furniture and vintage chairs. Services include haircuts, classic shaving, and beard and moustache styling. A tattoo parlour is adjacent to the barber shop: fathers and sons are confident to come together thanks to the El Palacio de Hierro brand power.  Also, the second floor is the home of a mezcaleria: emphasizing the mezcal culture, the bar provides a collection of more than 100 brands. Finally, the tech space reproduces the trees of the Coyoacan village. Products are demonstrated with iPads and customers are encouraged to touch and try out the various devices to ease the purchasing process.

The home department located on the third floor is a comforting and inviting space, with light wood, exposed brick, and shades of pink. Also, the floor gathers pet products, luggage and the following services: optics, click & collect, customer service, insurance, travel and a dedicated service for celebrations.

Decorated by Mexican contemporary artists, the fourth floor is for F&B (on top of a variety of gourmet food and drinks throughout the store). Zubieta is the department store’s first contemporary Mexican restaurant. It has a natural atmosphere with wooden chairs and tables, green accents, and tree decorations. El Gran Café Palacio is also an option for customers to take a break from their shopping spree. Visitors will also find La Terraza Palacio which features a variety of cuisines that can be enjoyed under the big glass dome. Restaurants are accessible outside of the store opening hours.

Polanco and Perisur stores are offering a good balance between products and services

Polanco store

Opened in 2015, Polanco is a very different experience from Coyoacan which shows a much more immersive strategy. The store entrance can initially give the feeling of a mall with a lot of luxury shop-in-shops. El Palacio de Hierro wants to make sure Polanco’s customers would not feel they are in a mall but in a store with its own identity, which is why they are progressively challenging the brands’ designs, asking for more transparency and see-through. Some shop-in-shops have 3 floors and are connected (Gucci, Louis Vuitton with 475 sqm, Chanel). 90% of Polanco’s customers do not shop in Masaryk Street (100 meters away) which explains that brands have a store in Polanco and another one 500 meters away. The interior design is inspired by the city centre, with reference to Paseo de la Reforma (the main street in Mexico City). Pop-up spaces are reproducing the railings of the street, the atriums are decorated with lamps inspired by the ones on the street, and the canopy is reproducing the Camino Real Hotel symbol, Finally, the ceiling is a homage to the Anthropology Museum in Mexico.

The ground floor is dedicated to beauty, luxury and accessories. Overall, the customer journey is being adjusted and oriented towards more fashion and luxury: for instance, Saint Laurent is taking additional space and absorbing Aristocrazy space. Brands are increasingly encouraged to have see-through stores to maintain harmony. A Moreau (leather goods) pop-up store is at the crossroad between the luxury and cosmetics spaces. Nearby, there are soft corners for bags and accessories displayed in a double exposure with other store locations. The cosmetics area reproduces the Alameda area, another part of the Mexico City centre, and its trees. Also, there is a new writing accessories space, which is working well and a new fine jewellery multi-brand space. The VIP room is used for brand presentations. Designed by a local artisan, benches are available throughout the floor and can be moved around. The atrium has a coffee shop which is an exclusive concept. Its roof is covered with LED screens reproducing the Chapultepec area.

The first floor is dedicated to women and kids. The women’s fashion categories include contemporary (with tree reproductions to separate spaces, and a seating area) and nightgowns (with a salon feeling). A huge shoe department includes a multi-brand space at its centre, shop-in-shops on the periphery and a sneaker maker. In the middle of the fashion space, there is a huge spa (for men and women) located in the middle of the fashion department, as well as a section dedicated to leather RTW and personal shopping services (accessible to all customers).

The shoe area leads to a second atrium where the kids’ department is located, decorated with palm trees as a reference to Chapultepec. The kids’ department is built with reference to a local amusement park, including a rollercoaster track decorating the ceiling.

The floor is also home to unique offerings: Chanel Privé for massage services and La Maison Dior for fragrances. Also, ‘La Suite’ is a 120 sqm apartment dedicated to receiving customers. Interestingly the space is not only used for hosting VIPs but also families for bridal try-ons or ceremony outfit buying. Brands can use the space to present their collections to customers, in which case 50% of the customers are invited by El Palacio de Hierro. This service is not charged (neither to customers nor to brands, the latter only paying for their catering). The space is also open at night.

Inspired by the Chapultepec area, the men’s department as well as F&B offerings are located on the second floor with the escalator leading to restaurants, a whisky and tequila bar and a terrace with a city view. The men’s department includes a barber shop operated by a very old and well-known company from the Mexico City centre. Finally, the third floor is for the home department with a showroom space where customers can try beds. The space is equipped with curtains allowing shoppers to get some privacy.

Perisur store

The store has a completely different feeling and takes cues from the volcanic stones and the sculptures from the 1968 Olympics which were held in the neighbourhood. The store is dedicated to Lance Wyman, the designer of the Mexico 1968 logo (there is a café named after him on the ground floor). The atrium offers a huge mobile moving with the air and the canopies reproduce the Perisur logo.

The ground floor gathers cosmetics, luxury and accessories. Boutiques are all see-through. The accessories multi-brand space is equipped with a luminous ceiling, reproducing the aesthetics of Pedregal houses (the name of the area). The fragrance multi-brand space is equipped with video columns. Close to the escalators, the Lance coffee shop is a destination point for people all around the store. There is also a champagne room treated as a boutique and a small VIP room also used for brand presentations.

The first floor gathers women and kids categories. The transition between women’s RTW and shoes is very wide and easy, only separated by cash desks. This is the most profitable area of the store. Kids are offered a cookie space just near the click & collect space. There is a thoughtful transition towards the women’s section which is completely open to the mall. An escalator leads to a Fauchon café, right in the middle of the fashion section. Personal shopping services are also near the escalators, in a space decorated as an apartment.

El Palacio de Hierro’s men’s customer base is very loyal. The second floor is their home and also offers sports, electronics and services. As in Coyoacan, there is a sneaker cleaning service. Shoes can be shipped to customers’ homes for 3 or more products. There is a bar located in contemporary fashion and a restaurant close to the pet section.

The third floor is for home categories, food and restaurants. The home section is offering a space dedicated to “solutions” (architects, designers, etc…). The food section is decorated with typical tiles from Pedregal houses. The standard restaurant concept Cantina Palacio is available here, only with a different feeling from Coyacan’s. Overall, El Palacio de Hierro’s F&B activities represent 300,000 customers per month. Restaurants (30 POS) are welcoming 13,000 customers per month, food halls welcome 107,000 customers per month and canteens (19 POS) serve 1 billion meals per year. Product sourcing is directly coming from farms.

El Palacio de Hierro’s services: a customer-centric vision

Palacio Contigo: maximizing contact with customers

Palacio Contigo is the name for both the loyalty card program and a customer-focused team. The team centralizes all customer services (before the pandemic customer service was dispatched per BU). There is a unique phone number for customers and call centres have been converted into contact centres operating through phone, WhatsApp, social media, website... Customers can ask any question via WhatsApp and book a product, but the purchase has to be in-store. This new organisation allowed El Palacio de Hierro to serve customers when stores were closed. It also helped reduce the complaints and increase NPS.

Suites and personal shoppers for all!

Not only dedicated to luxury shoppers, suites are available in all stores and used to help customers organize parties, buy products, and have meetings with specialists for special services such as house refurbishing. Basically, they can be used for anything to maximize the business. Due to the pandemic, customers learnt about this service and are increasingly using it. To run these suites, El Palacio de Hierro relies on 40 personal shoppers dispatched throughout the company. They are trained by the brands which send them information about the collections. The personal shopping team is not attached to one of the 14 stores but is independent. A manager oversees Mexico City and operations, another one manages the office and figures. Two drivers and a van are also part of the team to serve customers. Finally, two beauty concierges are available in 6 stores.

Optimization is on the way

Some challenges remain when it comes to data. El Palacio de Hierro misses the connection between POS transactions and the database. They use Salesforce and several different software which do not always work well together. The goal for the end of 2023 is to achieve a full connection able to offer the company a unique and holistic customer vision.

El Palacio de Hierro also works on how to convey personal shopping online. A new team was created in March 2023. For now, a bot pops up on the e-commerce website in all sections except for luxury (as for luxury products, it appears when customers start to scroll down). Also, they have to make sure that only the right people on the staff see and use the database at the right moment.

El Palacio de Hierro’s stores are remarkable in many ways. Firstly, and with incredible attention to detail and storytelling, they are purposely very different from one another as they intend to be truly part of their environment by using interesting neighbourhood architectural features or by paying homage to local cultural figures. Secondly, experiences and services, whether it is a personal shopping suite, a restaurant, a candy shop for kids or a barber shop in the men’s department, are efficiently and seamlessly embedded into product offerings. As a result, El Palacio de Hierro stores can be seen as great examples of customer-centricity.

Credits: IADS (Christine Montard)