What: Latin America’s five largest department store groups saw revenue growth slow to 2.2% in Q1 2026, with Falabella standing out as the only player to increase both revenue and profit.

Why it is important: Falabella’s outperformance underscores how disciplined investment, digital transformation, and omnichannel strategies can drive resilience and growth even as sector momentum slows.

The first quarter of 2026 marked a period of moderation for Latin America’s leading department store groups, with combined turnover rising just 2.2% year-on-year to $11.86 billion—well below the growth rates seen in previous quarters. Falabella was the clear exception, posting a 6.5% increase in revenue and a 22.2% rise in profit to $253 million, thanks to its ongoing focus on omnichannel growth, digital banking, and operational efficiency. In contrast, Cencosud and Liverpool reported flat or declining sales, while Ripley and El Palacio de Hierro managed modest gains but suffered double-digit profit drops. Despite these challenges, all five groups remained profitable, a notable improvement over the previous year when some ended Q1 in the red. The results highlight the growing divergence in performance across the sector, with Falabella’s disciplined investment and digital transformation setting the pace for resilience and sustainable growth in a more challenging macroeconomic environment.

IADS Notes: Falabella Group’s Q1 2026 results confirm its sustained strength, with profit up 22% to US$253 million and revenues rising 7% to US$3.601 billion, driven by omnichannel growth, digital banking, and continued investment in store experience and logistics (Press Release, May 2026). Modaes in May and September 2025 reported that the five largest Latin American department store groups achieved collective growth of 6.3% and 7% in Q1 2025, with Falabella, Liverpool, El Palacio de Hierro, Cencosud, and Ripley all posting robust top-line growth. Profitability was uneven, with Falabella tripling its net income and Ripley achieving triple-digit profit increases, while Liverpool’s profit dropped by 39%. Modaes in March 2026 documented a 48% surge in combined profits for the sector in 2025, led by Falabella and Ripley, and highlighted the sector’s adaptability and operational efficiency. Ripley’s December 2025 results showed 5.7% sales growth and more than doubled net profit, driven by gains across retail, banking, and real estate, and by private label innovation. In contrast, Modaes in May 2026 noted Liverpool’s Q1 2026 contraction, with revenue and net profit declining due to weak consumer demand in Mexico, despite the integration of Nordstrom’s business. Falabella’s February 2026 report confirmed record financial results for 2025, with a 9% increase in revenue and tripled net profit, reflecting asset revaluation and robust operational performance. Collectively, these sources illustrate the resilience and adaptability of leading Latin American department stores, with Falabella standing out for its operational excellence and sustained profitability amid sector-wide moderation and competitive pressures.