Peru accounts for 28% of Falabella's regional revenue, with plans for further growth
What: Peru emerges as a key market for Falabella Group, contributing 28% of regional revenue and 20% of EBITDA through a diverse portfolio of retail formats and financial services.
Why it is important: This market success illustrates the effectiveness of integrated retail ecosystems that combine traditional retail, financial services, and digital platforms to create comprehensive customer experiences.
Falabella Group's country manager in Peru, Alex Zimmermann, has revealed the significant scale of the company's operations in the country, highlighting Peru's strategic importance to the group's regional success. The company posted strong performance in the first quarter, with regional sales reaching $3.3 billion, representing a 9% increase, while EBITDA grew by 59%. Peru's contribution of 28% to regional revenue and 20% to total EBITDA underscores its crucial role in Falabella's ecosystem. Since entering the Peruvian market in 1995 through an alliance with Saga, the company has successfully expanded its presence to include 34 Falabella Retail stores, 90 Tottus stores, Bodegas UNO locations, and 56 Maestro and Sodimac stores, alongside Banco Falabella branches and Mallplaza shopping centers. The company's focus on customer-centric innovation and digital transformation has driven significant e-commerce growth, with online shipments increasing twentyfold during the pandemic, demonstrating the success of its integrated approach to retail evolution.
IADS Notes: Falabella's announcement of Peru's 28% contribution to regional revenue in June 2025 builds upon a series of strategic successes across Latin America. This performance follows an exceptional period where the company multiplied its profit by eight to €486 million in 2024, with particularly strong growth in Peru (15.7%) and Chile (3.8%). The company's multi-format strategy has proven successful, supported by a significant $650 million investment plan announced in December 2024, which allocated $450 million for store openings and shopping center transformations. This expansion is complemented by substantial investments in customer experience, including the implementation of one-day delivery services supported by a $27 million investment in distribution center automation. The success of this integrated approach is evident in Q1 2025's results, which showed an 11% overall sales increase driven by 19% retail growth, demonstrating how Falabella's balanced approach to physical and digital retail continues to strengthen its position as a leading regional retailer.
