What: Five major Latin American department stores achieve combined sales of USD 11.16 billion in Q1 2025, with growth rates ranging from 2.3% to 11.7% across different markets.

Why it is important: The diverse growth rates among major players highlight how Latin American retailers are successfully balancing traditional retail expansion with digital innovation, setting new benchmarks for regional retail transformation.

Latin American department stores demonstrated robust performance in the first quarter of 2025, with the five largest groups achieving collective growth of 6.3%. El Palacio de Hierro led the sector with an 11.7% increase, reaching sales of USD 661.9 million, while Cencosud recorded the most modest growth at 2.3%, though maintaining its position as the largest regional retailer with USD 4.285 billion in revenue. Liverpool and Falabella showed strong performance with 10.4% and 9.1% growth respectively, while Ripley achieved a 7.3% increase. Profitability improvements were widespread, with Falabella tripling its net income to USD 240 million, and both Cencosud and Ripley returning to profit. Only Liverpool experienced a profit decline of 19.6%, attributed to exchange rate fluctuations and higher import costs. The sector's combined net profit reached USD 538 million, reflecting successful digital transformation initiatives and strategic market expansions.

IADS Notes: The strong Q1 2025 performance of Latin American department stores, with 6.3% collective growth, reflects successful regional retail transformation strategies. El Palacio de Hierro's market-leading 11.7% growth builds on its successful 2024 performance, where it achieved 11% revenue growth and 28% increase in online sales. Falabella's strategic focus on digital capabilities, evidenced by its USD 166 million technology investment announced in December 2024, demonstrates the sector's commitment to omnichannel excellence. Liverpool's mixed results, with 10.4% revenue growth but 19.6% profit decline, highlight the challenges of balancing growth with profitability while pursuing international expansion through the Nordstrom partnership. This performance comes amid broader regional retail transformation, as shown by Ripley's successful margin improvement strategy in Q1 2025, demonstrating how Latin American retailers are effectively managing growth while maintaining profitability.

Latin American department stores gain momentum: 6.3% growth in Q1 2025