What: Liverpool’s fashion sales have slowed, with profitability now relying on e-commerce and financial services.

Why it is important: The trend underscores the vulnerability of traditional retail categories and the need for operational adaptation.

Liverpool, Mexico’s largest department store chain, is experiencing a notable slowdown in its fashion segment, with apparel, footwear, and accessories underperforming in the third quarter of 2025. Despite an overall increase in revenue, the company’s profit continues to decline, pressured by rising inventories and a 2.2 percentage point drop in profit margin. Efforts to stimulate fashion sales through campaigns such as back-to-school and mid-season promotions have yielded mixed results amid cautious consumer sentiment. As a result, Liverpool is increasingly dependent on other business lines, with real estate and financial services showing robust growth and helping to offset weaknesses in traditional retail. E-commerce has also become a vital pillar, now ranking as the fourth fastest-growing business for the group, with more than half of online sales paid for using Liverpool or Suburbia credit cards. However, the company faces ongoing challenges from increased operating expenses, higher tariffs on footwear, and rising delinquency rates on credit cards. Liverpool’s strategy now hinges on maintaining sufficient inventory for the holiday season and leveraging its digital and financial platforms to sustain profitability.

IADS Notes: Liverpool’s third quarter results in 2025 confirm a sector-wide shift, as digital expansion, financial services, and real estate drive growth while traditional retail categories like fashion struggle. This mirrors trends seen across Latin America, where digital transformation and diversification have supported revenue but not fully alleviated margin pressures. The company’s operational focus and omnichannel strategies align with broader industry efforts to adapt, as highlighted in “El Puerto de Liverpool reports 4.4% revenue growth in 2025 Q3” (October 2025, Press Release), “El Puerto de Liverpool Q1 sales increase by 10%, profits fell” (April 2025, Modaes), and “Latin American department stores gain momentum: 6.3% growth in Q1 2025” (May 2025, Modaes).

El Puerto de Liverpool loses momentum in fashion: can e-commerce and credit save the day?