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Megastores Usher in ‘New Era’ of Mango

The Barcelona-based retailer is supersizing its stores to between 8,600 square feet to more than 32,000 square feet.

Mango is planning a larger-store format.

Mango is gathering all of its brands under one roof and launching megastores, 200 to be exact, in 2014.

“We are starting a new era of Mango,” said Daniel Lopez, vice president. “We ended last year with 1.7 billion euros [$2.31 billion at current exchange] in sales. Our idea is to be 5 billion euros [$6.7 billion] turnover in the next four or five years. We’re going to achieve this through organic growth and the megastores.”

The Barcelona-based retailer is supersizing its stores to between 8,600 square feet to more than 32,000 square feet. The average size of Mango units is currently about 3,200 square feet.

In opening larger stores, Mango is following a path also being taken by rivals H&M, Zara and Uniqlo, which are opening bigger and bigger stores to contain expanding collections. H&M, for example, will open its largest store in the world, a 63,000-square-foot unit at Herald Center in Manhattan, in fall 2014.

“What we are seeing is that for [the] Mango women’s range, we need a minimum of 10,760 square feet of selling space,” said Lopez. “We’re turning our stores more into family stores. We’re also adding the men’s range, H.E. by Mango, and Mango Touch.”

Lopez ticked off the additional square footage required for men’s of 3,200 square feet; a new kids’ collection for boys and girls, three to 12 years old, 1,290 to 1,614,square feet, and the new Mango Sport & Intimates, 215 square feet to 430 square feet. The line includes an intimates collection and apparel for technical sports, homewear and yogawear. In February, Mango is launching Violetta, for large sizes, which will require 3,767 square feet of space. That’s a minimum of 18,200 square feet of extra space.

“The idea of megastores is a change in our DNA,” Lopez said. “Any store we are going to open from now on will have to have these requirements. There are going to be places were we cannot enlarge our Mango store as we would wish,” he said, referring to existing stores without available adjacent real estate. “We will have to open two or three stores. This is not the ideal.”

The few megastores that have opened have been well accepted by consumers, Lopez said.

“The result so far is fantastic,” Lopez said. “Sales compared to what we were experiencing are tremendous. We are very happy because in certain locations we’ve been able to do three and four times the turnover we were doing in the smaller business.”

While only 13 stores are planned for this year — Lopez called it a transition year — the company is gearing up to roll out 200 megastores in 2014.

The megastores will be concentrated in Spain, France, Germany, Belgium, the Netherlands, Luxembourg, Russia, Italy, Norway and Poland and in cities such as Barcelona; Bilbao, Spain; Paris; Maastricht, Netherlands, and Munich. In Munich, the brand will open its largest store — 24,757 square feet — in Europe in October.

There’s no word on when the megastore concept will travel to the U.S.

“In the States, are working towards clustering our footprint,” Lopez said. “We want to cluster in the regions where we’re already present to create better communication with consumers.”

At J.C. Penney, where Mango sells in “corners” at the stores, Lopez said, “Everyone is talking about Penney’s in the market. We are relatively comfortable with our relationship with Penney’s. We have gone through tough times with them. The relationship has strengthened.”