Mango plans to expand in the US after its withdrawal from China

FILE PHOTO. A woman carries a shopping bag from the Spanish fashion chain Mango in Vienna, Austria. May 17, 2017. REUTERS/Leonhard Foeger

By Corina Pons

BARCELONA, March 14 (Reuters) – Spanish fashion retailer Mango is focusing on expansion in the United States after sidelining China, its chief executive Toni Ruiz said.

Mango will focus on its growth in the United States after the failure of two previous attempts, with an offer of higher priced clothing designed for special occasions and parties. It will target areas where internet sales are already strong.

The brand, which is gaining more recognition in the United States, dressed actress Amber Valletta for the after-party of the Oscars ceremony on Sunday, Ruiz told Reuters.

In an interview held at the company’s headquarters near Barcelona, ​​he said American consumers now have a different and better perception of European brands.

Mango’s US relaunch began with the opening of a flagship store on New York’s Fifth Avenue in May 2022, followed by expansion into Florida. This year, it will open stores in Texas, Georgia and California.

The company expects to have 40 stores in the United States by 2024, up from 10 today. This would put the US in its top five markets worldwide.

The growth will be supported by the expansion of a logistics center in Catalonia, which will allow it to move 160 million items a year to serve stores and online customers around the world, according to the company.

Instead, Mango closed its two remaining stores in China last year. It maintains four franchise outlets and internet sales through Alibaba’s Tmall e-commerce platform.

Ruiz said the company is divesting from China as an “unattractive” market, adding that it has decided to remove the country from its priorities for the next three years.

Mango posted record revenue last year, helped by selling more items at higher prices. Its biggest competitor, the Zara brand, owned by fellow Spanish Inditex, is expected to post record sales on Wednesday, partly due to its aggressive expansion into the United States.

The recent aggressive entry of Chinese fast fashion brands Shein and Temu into the same market does not worry Mango, Ruiz said.

(1 US dollar = 0.9341 euros)

(Reporting by Corina Pons; Writing by Charlie Devereux; Editing in Spanish by Benjamín Mejías Valencia)

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