MEXICO CITY — Mexican upscale department store chain Palacio de Hierro has taken a $369.2 million syndicated bank loan to finance its Mexican expansion, the company revealed in a regulatory statement.
The funds will help the 123-year-old chain roll out new stores for its three main retail formats, including its traditional department stores, which average 236,780 square feet; smaller La Boutique Palacio shops, and upscale houseware chain Casa Palacio.
Palacio de Hierro, which is held by Mexican industrial group Val, would not provide more details about the loan.
Last fall, financial director Carlos Salcido revealed to WWD that the chain intends to open 10 stores by 2015 as it continues to expand in Mexico’s growing luxury fashion market. He added the company hopes to establish five of its classic department stores and five La Boutique Palacios by then.
Company spokeswoman Gina Pineda said those plans are still on track. She said Palacio’s next department store will open in Mexico City’s Interlomas quarter. The 269,000-square-foot store will feature structural and shopping innovations unseen in its other locations, she said.
“It’s going to be a very different department-store experience,” she noted, adding that the store will have no hallways and will be divided into merchandise zones or “universes” to give consumers an entirely new shopping experience.
Interlomas is set to open in mid November. Palacio will also open department stores in Villahermosa and Queretaro, Mexico, scheduled to open in 2012 and late 2012-early 2013, respectively. A store in Veracruz and another location are also in the cards.
With over $1 billion in sales last year, Palacio carries a broad range of international luxury brands to set itself apart from rivals such as Liverpool and Sears.
Fashion and luxury account for 50 percent and 15 percent, respectively, of apparel sales. As it seeks to grow the category, the chain has been striving to persuade high-end global brands to set up corners in its shops.
The effort has proved fruitful with brands like Bottega Veneta, Hermès, Givenchy and Marc Jacobs already present in its stores.
Later this year, Jimmy Choo is expected to arrive in its stores, Pineda said, adding that Sergio Rossi and Manolo Blahnik will follow. Women’s wear labels Ugg and Etro will also be opening corners this fall, following Tory Burch’s recent debut, Pineda added.
In the beauty category, Joe Malone and Khiel’s are expected to open corners in coming months, according to Pineda.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)