Strong expansions plans to drive another successful year at Mango

By

Jean-Paul Leroy

Published
Apr 11, 2013

Spanish retailer Mango has reported a 20% growth in annual revenue for 2012 to 1.69 billion euros, a figure that corresponds to R.R.P. sales excluding VAT for company-owned stores, plus wholesale sales to franchises.

Spain represents 16% of the Mango’s global activity, with exports therefore at 84%. Europe continues to be company’s main market despite a recent push to open stores outside of the continent, in Russia, CIS countries, the Middle East and Asia for example. The chain recently opened its first stores in Pakistan and Burma.

In total, Mango opened 197 stores in 2012, 17 of which were in Spain. To date the company has 2600 points of sale in 107 countries. This year, the firm is looking to invest in locations in Angola, Equatorial Guinea, Mongolia and Zimbabwe bumping that figure up to 111 countries, making Mango Spain’s most international fashion brand.

And it doesn’t end there. In the Middle East and South-East Asia, Mango is looking to open a further 20 stores in Saudi Arabia, the United Arab Emirates, the Philippines, Indonesia, Malaysia, Kuwait, Qatar and Thailand. A further ten or so store openings are scheduled for Azerbaijan, Kazakhstan and Turkmenistan.

Mango also wants to focus on South America, where the brand is implementing a broad plan of expansion, focusing primarily on Chile and Peru. In 2013 the firm plans to open, in both countries, Mango, H.E. by Mango and Mango Touch stores, in order to reach a total of 32 stores in Chile and 24 stores in Peru. Furthermore, this year the brand is opting for two growing markets: South Africa and Australia. In the next 4 years, Mango plans to open an extra 40 stores in each one.

In 2013, the firm plans to open new stores adopting this format in countries such as Spain, Germany, Belgium, France, Holland, Italy, Poland and Russia, including the largest store in Europe in Munich, measuring 2,300 m2, and the largest in the world in Ankara, measuring over 3,000m2.

For 2014, the brand is planning to launch two new lines: one whose concept is based on fashion for larger sizes and another aimed at a younger public, aged between 14 and 20.

H.E by Mango, the brand’s menswear line today has over 100 stores. For this year, a further 80 stores openings are in the pipelines. The objective is to create a network of 500 stores over the next few years and for menswear to represent 10% of the company’s annual sales.

Online sales at the company, though relatively modest at 70 million euros, leapt by 93% in 2012. The company’s e-commerce store is available in 46 countries across Europe, Asia and North America with the Middle East next on the list. The firm hopes to double its revenue generated by online sales by the end of 2013 and is working on not only developing its own site by working with other online retail specialists.

To finance these expansion ambitions, Mango is looking to invest 265 million euros in new store openings; renovations, logistics systems and IT.