What: Falabella will restore its pre-pandemic investment levels by 2026, allocating $800 million to expand its physical and digital retail presence across Latin America.

Why it is important: Falabella’s renewed investment signals a strong recovery and confidence in Latin American retail, aligning with recent trends of digital and physical expansion.

Falabella is set to return to its pre-pandemic investment levels by 2026, committing $800 million to reinforce its presence in Latin America’s retail sector. After halving its investments in 2020 due to the Covid-19 crisis, the Chilean conglomerate gradually increased its capital expenditure, reaching $650 million in 2024 and now projecting a full recovery in the next fiscal year. The company’s strategy centers on accelerating online market development in Peru, Colombia, Chile, and Mexico, leveraging partnerships with major supermarket chains such as Tottus and Soriana to drive both physical and digital growth. Falabella’s financial performance has rebounded significantly, with a 50% increase in gross operating profit and a 9.2% rise in sales in the first half of the current year, following a challenging 2023 marked by steep declines in revenue and profit. This renewed investment and focus on digital transformation reflect Falabella’s adaptation to shifting consumer behaviors and its ambition to regain market leadership in a rapidly evolving retail landscape.

IADS Notes:

Falabella’s $800 million investment plan for 2026 builds on a period of strong recovery and strategic transformation, as seen in its eightfold profit increase in 2024 and 11% sales growth in Q1 2025. The company’s digital expansion efforts, highlighted in Seller Day events and its e-commerce roadmap in June and July 2025, demonstrate the importance of technological infrastructure and marketplace partnerships. This approach, combined with operational efficiency and customer-centric strategies, has enabled Falabella to adapt its business model post-Covid, ensuring resilience and competitiveness across Latin America.

Falabella will recover its pre-pandemic investment level by 2026 with $800 million