In the major retail markets in Mexico, the composition and size of spaces in shopping centers reflect a commercial strategy that seeks to balance the attraction of big brands with the inclusion of smaller, specialized businesses.

According to SiiLA Market Analytics, the country has a marked inclination towards developing large spaces, such as anchor stores, megastores, and large outlets, representing 67% of the gross leasable area (GLA). This highlights a strategy to attract traffic, increase the time spent in shopping malls with brands that generate high visitor traffic, and establish the tone and image of shopping centers as top shopping destinations. However, the remaining 33% of the GLA focuses on medium and small spaces that underline the importance of diversified shopping experiences, going beyond the conventional. This combination reflects a holistic approach in shopping center development, where the presence of significant brands serves as a pillar around which more personalized offerings revolve.

On the one hand, anchor stores, which cover areas between 5,000 and 10,000 square meters, are not just retail outlets; they are traffic drivers that bring shopping centers to life, representing 42% of the GLA in Mexico. Megastores, although more modest in size, ranging from 2,000 to 5,000 square meters, complement this ecosystem with 18%, and large outlets, which are spaces of 1,000 to 2,000 square meters, add another 7%. These three types of spaces comprise a commercial strategy that bets on the magnitude and standardized shopping experience as the main attractions.

However, the retail narrative in Mexico does not end with giants like Liverpool, Cinepolis, Sears, Walmart, or Soriana. Medium spaces, ranging from 500 to 1,000 square meters, represent 14%, while little spaces, less than 1,000 square meters, including small spaces, mini stores, islands, and food court locations, make up 19%. This variety suggests a commercial strategy that goes beyond attracting large crowds, advocating for a shopping experience more susceptible to market changes and aligned with consumers' individual preferences.

Ultimately, the dual strategy allows shopping centers in Mexico to stay relevant, compensate for the growing volume of online sales, and enrich the social and economic fabric of communities by becoming places of gathering.

Regional Trends in Mexico

Although anchor stores and megastores prevail in Mexican shopping centers, each region adopts a unique strategy that reflects its commercial culture and the specific demands of its market.

In Monterrey, for example, the proportion of anchor stores (45%) exceeds that of other regions such as Mexico City (42%) and Guadalajara (42%), which could indicate a strategy focused on luxury, fashion, and large-scale retail consumption brands. In contrast, Queretaro (36%) shows a lower dependence on these stores, suggesting a more balanced approach that could favor the exploration and discovery of lesser-known or local brands. However, the marked presence of megastores in Queretaro, representing 25%, surpassing what is observed in Mexico City (20%), Guadalajara (15%), and Monterrey (13%), indicates that major retail players are essential to attract different consumer segments and strengthen the growth of medium and small businesses.

Also, differentiated commercial strategies are observed locally without considering the larger spaces, such as anchor stores, megastores, and large outlets.

On the one hand, Mexico City and Monterrey stand out for the presence of medium and small spaces, representing 32% and 22% of the GLA. This suggests a diversification of niche options aligned with the expectations of an urban and cosmopolitan public seeking variety and quality in their shopping experience, primarily marked by the presence of international and local brands offering exclusive products. In that sense, exclusivity is an essential strategy that allows these markets to differentiate themselves, attracting consumers interested in buying luxury products and experiencing a unique shopping experience.

On the other hand, Guadalajara and Queretaro not only bet on medium and small spaces (18% to 20%) but also mini stores (from 7% to 9% of the GLA). By integrating mini stores, Guadalajara and Queretaro enrich their commercial fabric with options that stand out for their uniqueness and specialization, from exclusive boutiques to concept stores and pop-ups offering unique products and services. This diversification attracts an audience that values proximity and originality in their purchases, fostering a more conscious consumption culture connected with the local community and promoting the growth of small entrepreneurs and emerging brands.

Finally, the differences in the proportion dedicated to food courts and commercial islands between regions reflect variations in how shopping centers seek to enrich the consumer experience beyond traditional shopping. Monterrey, with a higher proportion of food courts (1.3%), aims to become a gastronomic destination, and the distribution of islands in Guadalajara (0.5%) and Monterrey (1%) suggests a stronger focus on convenience sales than in other regions of the country.

The analyzed data indicates that the balance between large and small spaces in Mexico's retail market goes beyond size or capacity. It reflects complex and nuanced commercial strategies that seek to offer a comprehensive shopping experience where retail giants and emerging or space-limited businesses coexist to accelerate the competition of minority sales.

For more information on retail market trends in Mexico, explore SiiLA REsource or contact us at contacto@siila.com.mx.