The fashion group Mango has kicked off one of its most ambitious growth plans. The chain has just opened a large 2,100 m² store in the commercial heart of New York, in the most exclusive area of Fifth Avenue, which symbolizes the start of its expansion in a country in which it has set its sights on for years . The process had been underway since before the pandemic, but the outbreak of covid paralyzed it.
The company founded in Barcelona by Isak Andic is now taking up this project and plans to invest 100 million euros over three years to expand its network of establishments in the United States, spreading through the so-called Sun Belt, which covers the southern part of the country from coast to coast, until reaching 40 establishments by the end of 2024.
This is a strong commitment, since the company currently has six stores, including the enormous flagship that Andik inaugurated yesterday together with the CEO of Mango, Toni Ruiz, and the firm's management committee. They were accompanied by some influencers specialized in fashion, both Spanish and North American, to give visibility to the brand and the store, in which they have spent twelve million euros to start it up.
And the fact is that the establishment on Fifth Avenue will from now on be the reference for Mango, not only in New York, but throughout the United States. It is part, Ruiz said, of a process to consolidate the brand and position it in the competitive American market. "Being able to open here is a dream," said the CEO. The business is located at 711 of the emblematic artery, in the Grande Dame building, a building listed as historic from the late 1920s and which has been the headquarters of NBC, Columbia Pictures or Coca-Cola.
The inauguration was also held in the metaverse, where Mango has begun to experiment and create content, and included an exhibition of five digital works in NFT format co-created exclusively between the company and various artists based on pieces by Miró, Tàpies and Barcelo.
The new space is distributed over three floors on which Mango has applied the Mediterranean-inspired design that already includes some of its flagship stores, such as the one on Passeig de Gràcia in Barcelona.
Toni Ruiz believes that yes, that Mango has the potential to grow and become big in the United States, because – he explains – its product differs from that of other brands of similar price, with clothes for events that are cheaper than those offered by the surrounding competitors. -Mango sells more expensively in North America than in Spain to adapt prices to the purchasing power of the country's middle class; the black and white dress of the firm that Queen Letizia recently wore costs 49.99 euros in Spain and 99.99 dollars in the United States.
With this fashion and trend menu at an affordable price, they hope that the United States will soon be among their five main markets by turnover, exceeding one hundred million euros per year. A classification in which Russia used to be -it contributed around 8% of total income-, now paralyzed due to the invasion of Ukraine and the sanctions on Moscow.
The United States is the new key market, and the Fifth Avenue store will be followed this year by new stores in New York City (both in and around Manhattan). From there it will go on to a second phase in which it will open points of sale in the state of Florida. Specifically, between four and five points of sale during this year and until 2023, in cities such as Miami, Boca Raton, Orlando and Tampa.
Already in 2023, the company will continue to expand west with the opening of stores in the states of Georgia (Atlanta), Arizona (in cities such as Phoenix and Tucson), Texas (Houston and Dallas), Nevada (Las Vegas) and California. , where the target populations for the group include, among others, Los Angeles, San Diego and San Jose.
The choice of these locations has been carefully studied. Mango already sells through the online channel throughout the United States, so that e-commerce has allowed them to identify which customer clusters may be more profitable. In parallel to the stores, the company will intensify its online activity, both under the umbrella of Mango.com and in marketplaces, with the aim that this channel contributes 70% of the business generated in the country.
The good financial health of the company, which returned to profit in 2021 and has reduced debt, allows it, underlines Ruiz, to undertake this strategic growth plan. The multinational recovered from the losses of two years ago and closed the last year with a sales figure that almost equals that of 2019, when it obtained a record turnover. Revenues reached 2,234 million euros, compared to the 1,842 million registered in 2020 and a short distance from the 2,374 million of 2019. But although it billed somewhat less, it earned more than then: 67 million. In total, the chain ended 2021 with 2,447 points of sale in its 110 markets.
For this year the perspectives are "positive", assures Ruiz. Despite inflation and the global uncertainty of the war in Ukraine, activity during the first half of the year is meeting the company's expectations. The next stop after the expansion in the United States will be India, where its thriving middle class could be a great market in the medium term.