Mexico, where shoppers still flock to Woolworth and Sears - Monitor
Ricardo Salinas Pliego’s Grupo Elektra paid $31 million in 2014 for 300 Blockbuster stores in Mexico, just as the U. S. business collapsed everywhere — except the Rio Grande Valley and Alaska. Woolworth, whose last U. S. shop closed in the 1990s, plans three new locations in Mexico next year and has a location in Reynosa. Sears in Mexico, controlled by Carlos Slim’s Grupo Sanborns, will open five new stores in 2015. last fiscal year, its U. S. namesake closed 61. The chain plans to close its La Plaza Mall location in McAllen later this year. Retail brands have a longer shelf-life because they don’t face as many competitors, and fewer people buy online, according to Juan Martinez, the president of research firm Superbrands Mexico. “There are many brands that can survive a little longer in Mexico than in the U. S. ”. Forgive a U. S. visitor for feeling lost in a time warp. Mexico City’s trendy Roma neighborhood is dotted with Blockbuster, Sears and Woolworth stores, along with art galleries and sidewalk cafes. stores and restaurants are “aspirational” brands for many Mexicans, particularly those without easy access to credit, according to Martha Shelton, an equity analyst with Itau BBA in Mexico City. Sanborns shares have gained 5. 7 percent over the past year, while Elektra is up 4. 9 percent. Source: www.themonitor.com
