In an attempt to change its reputation as a fast-fashion store and establish itself as a high-end brand, Spanish retailer Mango is launching a daring growth strategy in the United States.
In an interview with CNBC, Mango CEO Toni Ruiz stated that the privately owned firm, which has its headquarters in Barcelona, intends to establish 42 new outlets in the United States by the end of the year and 20 more in 2025, mostly in the Northeast and Sun Belt.
By next year, the firm will have 1,200 employees in the United States thanks to the $70 million growth plan, which also includes a new logistics center outside of Los Angeles and around 600 additional employment.
Ruiz declared, “This is a long-term commitment.” He said, “We also have the opportunity to have bigger stores in the U.S.” Mango plans to open a few multiline stores with merchandise for both men and children.
In the United States, Mango’s sales increased by over 10% this year, and the business anticipates double-digit growth in the upcoming year.
At the moment, Mango’s native base in Spain is its biggest market. Although the U.S. is one of its top five markets, the corporation wants to increase sales there in order to overtake the top three. The objective is a component of Mango’s broader strategic strategy, which aims to increase revenues from around 3.1 billion euros a year to 4 billion euros by 2026.
Mango, which is well-known for its stylish, European essentials, wants to show customers that it is a high-end brand and not a fast-fashion one. Everything is created in-house in Barcelona, and the process takes seven to eight months, according to Ruiz.
We have all of the fittings, patterns, and designs inside. This is crucial to us, therefore everything is completed here. Additionally, we have 500 employees that handle the goods from start to finish,” Ruiz stated.
Our goal is to raise the bar. Elevate, what does that mean? We believe that this originality, this design, and this personal flair are really appreciated by our client. For this reason, we are making a lot of effort to improve not just the quality and style but also the costs. because we are improving our proposal.
Mango’s U.S. expansion goals, according to Ruiz, are centered on shops since having a physical presence would enable the business to communicate with customers more effectively and convey its narrative in a fresh way.
The business is one of several foreign rivals that have looked to the U.S. market for expansion, including Japan’s Uniqlo, Spain’s Zara, and Sweden’s H&M. According to a Lending Tree research, the average American household spends over $2,000 a year on clothing, thus they are all vying for their business.
With the help of e-commerce data, Mango has launched stores in Massachusetts, Pennsylvania, and Washington, D.C., but it is now focusing on the Sun Belt for its next stage of expansion.
According to Ruiz, Mango’s website currently accounts for around 33% of total sales and assists the store in identifying the sources and products of its clientele.
“We have realized that every state in the United States is similar to a country in Europe, so it’s a big challenge for us because of the customer and the way of dressing,” Ruiz said. “Knowing how the states differ from one another is crucial. For this reason, we attempt to go gradually.
