Nov 7, 2022
Mango to close 2022 with 270 new points of sale and €120 million in investment
Nov 7, 2022
The fashion firm Mango is continuing to grow its geographic footprint and will close this year with 270 new points of sale, including one in Albacete, to bring its total number of stores worldwide to 2,600. The brand will additionally close 2022 with global investments of €120 million, almost three times more than in 2021.
According to year-end forecasts, out of the total investments made during 2022, €40 million have been earmarked for store openings and refurbishments and the rest have been allocated to technology, logistics and structure.
Mango's global retail director, César de Vicente, explained to EFE that 2022 has been a "very special" year that has seen the opening of new flagship stores, such as the one Mango opened on New York's Fifth Avenue.
In addition, the company is expanding in countries such as the United States, Canada and India, and is growing and becoming more established in mature markets such as Spain, France, Italy, Germany and the United Kingdom.
This boost in its internationalization has led the company to be present in more than 115 markets, after launching in Morocco and Cameroon this year, and to generate 79% of its turnover abroad.
"Being active in so many countries allows us to diversify and take advantage of more opportunities and not depend only on certain markets," said De Vicente.
Spain also represents a key market for the company, since although the country's fashion market is very "fragmented and segmented", with a market share of 3%, Mango still has a "significant opportunity for growth", according to the executive.
By the end of 2022, Mango will have opened more than 30 new points of sale in Spain in cities such as Logroño, León, Fuengirola, Vigo, Santiago, Melilla, Estepona, Albacete and Platja d'Aro, in addition to renovating stores in Castellón, Badalona and Granada.
The company intends to "keep growing" and take advantage of opportunities in different markets, while adapting to each country's individual market conditions.
De Vicente has stated that, despite the consequences of the war in Ukraine and inflation, the company expects to close the year with record sales and exceed the €2.37 billion earned in 2019, just before the start of the pandemic, while it expects to achieve at least the same level of ebitda as in 2021.
Mango ceased direct operations in Russia last June and began the process of transferring its own stores to franchisees for a "nominal fee".
Out of the 55 stores it operated in the country prior to the outbreak of the war in Ukraine, the company has closed 11 stores and sold another 17, while the rest are in the process of being sold.
The Russian market accounted for 8% of the company's profit.
Despite the current geopolitical situation, Mango has not noticed a decline in consumer spending in its stores and its head of retail expects sales to pick up during the Black Friday and Christmas periods, as people are looking forward to shopping and partying.
Global supply chain disruptions caused by the pandemic have prompted Isak Andic's company to try to reduce its dependence on Chinese production and direct it more towards the Mediterranean area, to countries such as Turkey and Morocco.
As part of its strategic plan, Mango is committed to creativity, innovation, sustainability and a differentiating value proposition.
In addition, the company is currently designing and building a new headquarters in the Riera de Caldes industrial park in the Barcelona municipality of Palau Solità i Plegamans, which is scheduled to be up and running by 2024.
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