Spanish Mango to seal US alliance with Macy's
The company, which broke its agreement with JC Penney four years ago, will start by launching three corners in the world's largest department store group.
Spanish company Mango returns to undertake the conquest of the first potency of the world. Four years after breaking its alliance with JC Penney, the company has sealed an agreement with Macy's, the largest department store group in the world. The alliance will begin with three corners in New York but could be extended to other states.
In this way, Mango returns to bet on a channel, the department store, which did not give him too many successes in his last attempt. According to what Enric Almost, at that time CEO of Mango, at Modaes.es the corners add more pressure for the margin because the company needs time to properly adapt their offer, and meanwhile, the stock ends up being liquidated with discounts. In Spain, the company joined forces at the beginning of the year with El Corte Inglés to introduce its Violeta brand in the department stores.
Mango's first three points of sale at Macy's will be at the Staten Island, Roosevelt Field and Herald Square centers. The latter, opened in 1901, is the most emblematic store of Macy's and the largest department store in the country, with an area of 230,000 square meters.
Mango will open in Staten Island, Roosevelt Field and Herald Square, the flagship of Macy's
The agreement comes at a turning point for Mango, which has begun to reap the rewards of several years of restructuring. In this new scenario, the United States is one of the strategic markets for the company.
Last May, the brand dressed a celebrity for the first time at the Met gala in New York, an event with a lot of impact within the country. In addition, the company designed a specific collection inspired by the event that was distributed only in its New York store.
Mango, who landed in the United States in 2006, currently operates in the country with a store in Soho and distributes online through its own website, the Lord & Taylor platform and marketplaces such as Amazon. To manage shipments, the group works with a warehouse in New Jersey.
In its latest alliance with department stores, the company's margin weakened
The company broke in 2015 with JC Penney, with whom it had 450 points of sale in the country. Two years later, the chain resumed its strategy in the US market with an alliance with Lord & Taylor, owned by Hudson's Bay, and the reopening of its flagship in New York.
Then, the company explained that its goal in the US market was to boost its online sales by relying on a few flagship stores in the big cities of the country.
Through the alliance with Macy's, Mango could achieve, at the same time, exposure and penetration in the country but with much less investment than deploying its own network of stores.
The company started a new offensive in the US in 2017, when it signed an agreement with Lord & Taylor
Macy's is the largest department store group in the world and one of the largest fashion distributors in the United States, a position that now beats against Amazon.
The company, based in Ohio, closed 2018 with a turnover of 24,971 million dollars, in line with the previous year, and a net profit of 1,098 million dollars. The group also works with the Bloomingdale's and Blumercury concepts and has more than 800 establishments in the United States.
Mango, meanwhile, closed 2018 with a 1.8% growth, to 2,233 million euros, which was the first year to rise after two years in decline. The gross operating result (ebitda), meanwhile, stood at 135 million euros.
Validation policy for comments:
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.