MEXICO CITY — El Palacio de Hierro, the Mexican luxury department store network, is set to open a new store in the mixed Mitikha residential and shopping complex in the Coyoacán area in southern Mexico City, a company spokeswoman confirmed to WWD.
The unit comes as the chain continues to expand and refurbish stores, having recently spent 2 billion pesos, or $98 million at current exchange, to build the Mitikha store and remodel two of its Perisur and Santa Fe locations.
The Mitikha complex, which will reportedly feature the city’s largest skyscraper, will open in the third quarter of 2022 and will also feature stores by rival chain Liverpool, international franchiser Grupo Axo and Zara owner Inditex.
The development comes as El Palacio de Hierro posted a 46 percent jump to 37.2 billion pesos in 2021 revenues while earnings before interest, taxes, depreciation and amortization quadrupled to 4.3 billion pesos, according to a regulatory statement. On a same-store basis, sales grew 29 percent, well above the industry’s 13 percent average for the year, during which the pandemic continued to pressure apparel sales.
Online sales grew 43 percent as the chain boosted traffic through marketing campaigns including “Palacio Contigo” [Palacio With You], which featured merchandise delivery options such as in-store click and collect.
The Perisur and Santa Fe stores located in the southern tip of Mexico City and in a sprawling office district area, respectively, were revamped to elevate the shopping experience by incorporating neighborhood elements such as nature and mountain stone in the Pedregal (Perisur) area and office towers in the Santa Fe business and hotel hub, including new merchandise selections and gourmet spaces.
Founded in 1888, El Palacio is an exclusive distributor of luxury fashion houses such as Burberry, Tiffany, Christian Dior and CH Carolina Herrera, among many others. Its main store in the city’s Polanco quarter houses the largest upmarket merchandise selection in Mexico and much of Latin America.