Anchor Stores: Major Drivers of Retail in Mexico's Top Markets

Anchor stores are large commercial establishments serving as customer magnets in shopping malls or retail areas. In the leading real estate submarkets at a national level, these stores dominate space occupancy. According to SiiLA Market Analytics data, 42% of the retail space in Mexico City, Guadalajara, and Monterrey corresponds to anchor stores.

Typically, these establishments are located at the ends or in the most visible external parts of plazas or commercial areas, aiming to generate a constant flow of consumers who, while moving between anchor stores, explore the rest of the retail businesses. Given that anchor stores are usually well-known and popular firms in the market, they are essential for attracting people and for the success and economic viability of shopping centers. Examples of anchor stores include Chedraui, Cinemex, Cinepolis, El Palacio de Hierro, Liverpool, Sam's Club, Sears, Soriana, and Walmart. These nine companies occupy 80% of the anchor store area in the leading national submarkets, according to SiiLA.

Anchor stores are attractive to consumers because they offer a variety of products and services at competitive prices, with brands associated with quality shopping. In Mexico, offering products and services in anchor stores focuses on two commercial niches: department stores and self-service stores, which represent 81% of anchor stores' gross leasable area (GLA), and cinemas, which occupy 18% of anchor stores' GLA.

In the context of the retail sector's incipient recovery in Mexico after the pandemic, where there is a downward trend in availability, a gradual reactivation of new deliveries, and a resurgence in absorption in the leading national markets, anchor stores have also experienced growth. Over the past year, the GLA of these stores increased by 8% in Mexico City, Guadalajara, and Monterrey, accounting for the absorption of approximately 180,000 square meters.

The above is of utmost importance, especially considering that between 2020 and 2021, there was an economic slowdown in Mexico's retail sector that led to some anchor stores' closures. This was the case with Best Buy Mexico, which closed its stores nationwide in December 2020, when competition between department stores and the strengthening of e-commerce unbalanced several retail competitors.

Anchor stores play a fundamental role in Mexico's economic landscape by generating employment, attracting consumers, and contributing to the retail sector's development. Their presence and continuous growth are positive indicators for the recovery and strengthening of the commercial industry in the country.

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