What: Latin America's five largest department store groups posted $24.563 billion in combined H1 revenue, up 2.3%, while returning to profitability with $1.087 billion in combined net income.

Why it is important: The sharp slowdown from 7% to 2.3% growth — continuing a deceleration already visible in Q1 2026 — signals that the region's post-2025 rebound is losing steam, even as most groups defend profitability.

Latin America's largest department store groups grew at a markedly slower pace in the first half of 2026. Cencosud, Falabella, Liverpool, Ripley, and El Palacio de Hierro posted combined sales of $24.563 billion between January and June, up 2.3% year-on-year — well below the 7% growth recorded over the same period in 2025.

Falabella was the standout performer, growing revenue by 7% and posting the strongest individual result among the five groups. Cencosud was the only company to see revenue contract, down 0.86%, and posted a second-quarter loss at its Paris chain; its year-to-date net profit fell 63% compared with the first half of 2025.

Despite the slower top line, the sector returned to profitability, with combined net income reaching $1.087 billion, slightly ahead of the $1.080 billion recorded a year earlier. Ripley's profit rose 59% in the second quarter alone, lifting its half-year total to $37 million, up 12.4%. Liverpool posted a 25.3% increase in net income to $414.7 million, while El Palacio de Hierro's profit slipped 3.5% to $49.6 million.

IADS Notes: This deceleration continues a trend already visible earlier in the year: Modaes, May 2026 reported that combined revenue growth had already slowed to 2.2% in the first quarter of 2026, with Falabella the only group to grow both sales and profit while Cencosud and Liverpool posted flat or declining figures. Cencosud's difficulties deepened through the second quarter, when Bloomberg, August 2026 reported that the retailer swung to a loss as transformation costs, weaker margins and competitive pressure weighed on results, extending the investor skepticism already flagged by Bloomberg, July 2026, which noted that recent acquisitions and restructuring had yet to translate into measurable margin recovery. The current slowdown also follows a markedly stronger 2025: Modaes, March 2026 reported that the same five groups' combined profit had risen nearly 48% for the full year, led by Falabella and Ripley, underscoring how sharply momentum has cooled since then.

Latin American department stores return to profitability despite slower H1 growth