What: Latin America’s top five department store groups saw profits soar by nearly 48% in 2025, with double-digit revenue growth led by Chilean retailers Falabella and Ripley.

Why it is important: This performance highlights the resilience and adaptability of leading Latin American department stores, driven by digital transformation, operational efficiency, and strategic investment.

Latin America’s department store sector staged a robust recovery in 2025, with the region’s five largest groups—Falabella, Liverpool, Cencosud, Ripley, and El Palacio de Hierro—posting a combined profit of $3.17 billion, up nearly 48% from the previous year. Revenues also rose by 10%, reaching $51.3 billion, as Chilean players Falabella and Ripley led the charge with profits tripling and doubling, respectively. This turnaround follows a challenging 2024 marked by declining margins and losses, particularly for Ripley, which rebounded through operational efficiency and diversified growth. Cencosud maintained its position as the region’s largest retailer by turnover, while Liverpool and El Palacio de Hierro posted more modest gains. Looking ahead, the sector is set to accelerate investment in store openings, refurbishments, technology, and logistics, with Falabella alone earmarking over $600 million for expansion and modernization. These results underscore the sector’s ability to adapt, innovate, and leverage digital transformation to drive profitability and sustain growth in a competitive landscape.

IADS Notes: Latin American department stores have demonstrated remarkable resilience and adaptability throughout 2025, with the region’s top five groups achieving robust double-digit revenue growth and a 48% surge in combined profits. Modaes (December 2025, September 2025) highlights that Falabella, Liverpool, Cencosud, Ripley, and El Palacio de Hierro collectively posted a 16% sales increase through September, with Chilean groups—especially Falabella and Ripley—leading in profit gains, while Mexican retailers like Liverpool faced ongoing margin pressures despite revenue growth. Perú Retail (March 2026) and Modaes (February 2026) document Ripley’s record-breaking 120% profit surge and Falabella’s tripling of profits, both driven by operational efficiency, digital transformation, and strategic investments in technology, logistics, and omnichannel capabilities. Liverpool’s experience, as reported by Modaes (February 2026), illustrates the challenges of sustaining profitability amid macroeconomic headwinds, prompting diversification into wholesale, digital, and international partnerships. Across the region, the ability to balance physical and digital retail, invest in modernization, and pursue multi-segment growth has enabled leading department stores to outperform expectations and set new benchmarks for resilience and innovation in Latin American retail.

In Latin America, department stores profits soar by 48% in 2025