What: Falabella, Liverpool, Cencosud, Ripley, and El Palacio de Hierro posted $35.244 billion in sales through September, driven by strong revenue growth but mixed profit results across the region.

Why it is important: This growth demonstrates the resilience of Latin American department stores and highlights how operational strategies are shaping profitability across different markets.

Latin America’s leading department store groups—Falabella, Liverpool, Cencosud, Ripley, and El Palacio de Hierro—have collectively posted a 16% increase in sales through September, reaching $35.244 billion. This robust performance underscores the sector’s resilience and capacity for expansion, particularly among the Chilean companies, which have seen both revenues and profits rise. While Liverpool led in revenue growth among the Mexican groups, it, along with El Palacio de Hierro, faced declining profitability, revealing the operational challenges unique to the Mexican market. In contrast, Chile’s department stores, especially Falabella and Ripley, achieved significant profit gains, with Falabella maintaining upward momentum even in a challenging third quarter. Despite some setbacks in quarterly profits for most groups, overall accumulated profits rose by nearly 33% year-over-year. The continued revenue growth, even amid profit volatility, highlights the importance of strategic adaptation and efficiency in navigating Latin America’s dynamic retail landscape.

IADS Notes: The robust 16% sales growth reported by Latin America’s leading department stores through September 2025 reflects a continuation of the positive momentum seen earlier in the year, as documented in Modaes reports from May and September 2025. This growth is underpinned by the sector’s ability to adapt through digital transformation and operational efficiency, with El Palacio de Hierro and Falabella standing out for their strong revenue gains and strategic investments in omnichannel capabilities. However, the contrasting profitability trends between Mexican and Chilean groups, particularly Liverpool’s ongoing margin pressures and Ripley’s record-breaking profit increases, highlight the operational challenges and market-specific strategies shaping the competitive landscape. The volatility in quarterly profits, especially Liverpool’s reliance on e-commerce and financial services to offset declines in traditional categories, underscores the sector’s need for continuous adaptation. These trends are further contextualized by the broader regional transformation, where Mexican retailers’ focus on localization and financial services has enabled them to outperform international peers, as noted in McMillanDoolittle’s May 2025 analysis.

Latin American department stores grow 16% in September