What: Falabella announces a USD 650 million investment plan for 2025, including USD 450 million for store openings and shopping center transformations, with a focus on Sodimac expansion in Mexico and supermarkets in Peru, while allocating USD 166 million to enhance technological capabilities.

Why it is important: This strategic investment represents Falabella's confidence in its multi-format retail strategy, leveraging both store network expansion and technological advancement to strengthen its competitive position across different markets. Falabella has unveiled an ambitious USD 650 million capital expenditure plan for 2025, marking a 30% increase from current levels and signaling a return to historical investment patterns.

The plan allocates more than USD 450 million to store openings, expansions, and transformations of Falabella stores and Plaza shopping centers. Specifically, the company plans to open 15 new stores in 2025, primarily focusing on Sodimac expansion in Mexico and supermarket growth in Peru under the Precio Uno brand. The investment includes USD 99 million for three new Falabella stores, five Sodimac locations, and seven Tottus stores across Chile, Peru, and Mexico. Additionally, USD 166 million will be dedicated to strengthening the group's technological capabilities, supporting its e-commerce operations' path to profitability by 2026.

IADS Notes: After reporting strong Q3 2024 results with USD 97 million in profits, and successfully implementing its asset optimization strategy, this 30% increase in capital expenditure demonstrates renewed confidence. The plan builds on recent successes in logistics and digital transformation, positioning Falabella for sustainable growth across Latin America.

Falabella boosts growth with a $650m investment plan for 2025