What: Liverpool’s profits fell by 25% in 2025 despite a 7% increase in revenue, as the company launched a new wholesale business and expanded digital and international partnerships.

Why it is important: Liverpool’s results illustrate the challenges of sustaining profitability amid macroeconomic pressures and the need for diversification in modern retail.

Liverpool’s 2025 performance underscores the complexities facing department store groups in emerging markets, as the company reported a 25% decline in net profit despite achieving nearly 7% revenue growth. The retailer’s results reflect the impact of a consumption slowdown in Mexico and shifting tariff policies in the United States, which have squeezed margins and increased operational costs. In response, Liverpool is diversifying its business model, launching a new wholesale distribution division with an exclusive Dockers license through a long-term agreement with Authentic Brands. This move is designed to drive revenue growth, improve profitability, and broaden the company’s reach beyond its traditional retail and digital channels. Online sales now account for over 30% of Liverpool’s business, highlighting the importance of digital transformation in maintaining competitiveness. The group’s multi-segment strategy, spanning retail, financial, and real estate divisions, demonstrates a commitment to resilience and adaptation in a volatile economic environment. Liverpool’s evolving approach positions it as a forward-thinking leader in the Mexican retail sector.

IADS Notes: Liverpool’s 2025 results mirror broader industry trends, with margin pressures and operational challenges noted throughout the year (Modaes, April/October 2025). The company’s diversification into wholesale, digital expansion, and international partnerships—including the Dockers license and a stake in Nordstrom—reflects efforts to offset traditional retail weaknesses (Modaes, January 2026; WWD, February 2026; Digital 360, November 2025). These strategies underscore the importance of innovation, digitalisation, and multi-segment growth for sustained resilience in modern retail.

Liverpool cuts its profits by 25% despite increasing revenue by 7% in 2025