Last week, El Palacio de Hierro reopened its doors at Plaza Satelite after a closure period for renovations. With an investment of nearly $170 million and the addition of a fourth level, this store, spanning over 37,000 square meters in the State of Mexico, promises to provide a personalized luxury shopping experience. The renovation is part of an omnichannel commercial strategy focused on sophisticated brands and an innovative space that combines cutting-edge design, state-of-the-art technology, and a diverse range of products and services, from beauty and gastronomy to fashion garments and accessories.

The strengthening of its omnichannel presence aims to drive El Palacio de Hierro's growth, especially in a context where its digital sales have been on the rise due to the surge in e-commerce in Mexico since 2020.

According to the company, its sales revenue has increased by 55% over the past two years. This robust growth can be attributed to El Palacio de Hierro's commercial strategy and the increased dynamism of consumers. This includes the expansion of their digital sales channels, which generated 36% more revenue between Q2 2023 and 2022, according to the company's latest financial report.

The expansion and renovation of El Palacio de Hierro represents a significant milestone in the Mexican retail real estate market. Data from SiiLA indicates that this luxury retail chain is the third-largest tenant in the consumer products sector in terms of occupied space in anchor stores, following competitors like Liverpool and Sears. In the country's major shopping centers, El Palacio de Hierro occupies approximately 158,000 square meters, equivalent to 6% of the anchor store area in major cities such as Mexico City, Guadalajara, Monterrey, and Queretaro.

Between Q3 2023 and 2020, El Palacio de Hierro's Gross Leasable Area (GLA) in shopping centers increased by around 57%. This is in addition to the recent expansion, which adds between 7,000 and 8,000 square meters to its GLA at Plaza Satelite.