What: Latin American department stores achieved 7% revenue growth and $1.235 billion in profits in the first half of 2025, with El Palacio de Hierro leading in growth and Liverpool facing a sharp profit decline.

Why it is important: This performance confirms the resilience of Latin American department stores, supported by digital transformation and operational efficiency, as seen in recent Notion reports.

Latin American department stores sustained their strong momentum through the first half of 2025, recording a 7% increase in revenue and reaching $23.3 billion in cumulative sales. The sector’s five largest groups—Falabella, Liverpool, Palacio de Hierro, Cencosud, and Ripley—demonstrated robust top-line growth, with El Palacio de Hierro standing out for its 12.4% year-over-year surge. Cencosud maintained its position as the region’s revenue leader, though its growth was the most modest at 3.8%. Falabella and Liverpool both posted growth just below double digits, while Ripley achieved a 5.4% increase. Despite the overall positive trajectory, profitability was uneven: the combined profit for the five giants reached $1.235 billion, but Liverpool’s profit dropped by 39%, highlighting ongoing operational challenges. In contrast, the Chilean groups, especially Ripley, saw triple-digit profit increases, with Ripley achieving its best result in seven years. These results underscore the sector’s ability to adapt and thrive amid shifting market dynamics, leveraging both digital and operational strategies to maintain relevance and profitability.

IADS Notes: The strong first-half performance of Latin American department stores builds on the 6.3% collective growth seen in Q1 2025, as reported by Modaes in May 2025 (“Latin American department stores gain momentum: 6.3% growth in Q1 2025”). El Palacio de Hierro led in revenue gains and widespread profitability improvements, except for Liverpool, whose ongoing profit challenges and margin pressures were also evident in April 2025 (“El Puerto de Liverpool Q1 sales increase by 10%, profits fell,” Modaes). Ripley’s record profitability in Chile and Peru, highlighted in May 2025 (“Ripley strengthens profitability in Chile and Peru,” Modaes), demonstrates the effectiveness of disciplined inventory and promotional strategies. The contrast with US department stores, as noted by McMillanDoolittle in May 2025 (“Department store retailing remains a bright spot in Mexico vs. the USA”), further emphasises the success of Mexican retailers in leveraging localisation, financial services, and digital transformation to outperform international peers.

Latin American department stores achieved 7% revenue growth in 2025 Q1