Spain's Mango plans U.S. expansion after China retreat


Published Mar 14, 2023 02:04AM ET

Updated Mar 14, 2023 05:47AM ET

By Corina Pons

BARCELONA, Spain (Reuters) - Spanish fashion retailer Mango is focusing on U.S. expansion after turning its back on China, Chief Executive Officer Toni Ruiz said.

Mango is returning to the United States - after two previous attempts failed - offering higher-priced clothes meant for special occasions and parties. It will target states where online sales are already strong.

The brand is already gaining more recognition in the U.S. and dressed actress Amber Valletta for the Oscars after-party on Sunday, Ruiz told Reuters.

"Something has changed," he said in an interview at the company's headquarters near Barcelona. "They now have a different and better perception of European brands."

Mango's U.S. relaunch began with the opening of a flagship store on New York's Fifth Avenue in May 2022. That was followed by expansion in Florida. This year, it will open stores in Texas, Georgia and California.

The company hopes to have 40 stores in the U.S. by 2024, compared with 10 at present. That would place the U.S. in its top five global markets.

Growth will be supported by the extension of a logistics centre in Catalonia, allowing it to shift 160 million items a year to serve shops and online customers globally, the company said.

In contrast, Mango closed its remaining two stores in China last year. It maintains four franchise outlets and online sales through Alibaba (NYSE:BABA)'s Tmall e-commerce platform.

"We are divesting in China," said Ruiz. "We find it unattractive and have decided that it is not the priority for the next three years."

Mango reported record sales last year, helped by selling more items at higher prices. Its biggest rival, Inditex-owned label Zara, is expected to report record sales on Wednesday, partly due to its aggressive U.S. expansion.

The recent aggressive entry of Chinese fast-fashion brands Shein and Temu into the same market is not a concern for Mango, said Ruiz.

"It's not our war," he said. "If you were fighting with these brands you would be constantly lowering prices."

(This story has been refiled to remove extraneous word in paragraph 3)

Get The News You Want
Read market moving news with a personalized feed of stocks you care about.
Get The App

($1 = 0.9341 euros)

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Sign out
Are you sure you want to sign out?
Saving Changes