The UK’s luxury Burberry brand announced plans to open a new store in Mexico this year, following a 30 percent sales hike after targeting buyers in Mexico and other South American countries. The luxury goods retailer said sales of aviator jackets, shoes and other accessories rose sharply as more middle-class shoppers in Mexico have gained access to its products following a successful global expansion.
“Total revenue grew by 30 percent over the last three months of 2011 [to hit more than $390 million],” Burberry told the UK Telegraph. “Burberry has since opened seven large shops, including outlets in Puebla, Mexico.”
According to UK newspaper The Guardian,Burberry’s CEO Angela Ahrendts said markets such as Mexico are “still in the investment phase.” According to the report, the brand plans to open an additional ten stores as part of a more than $300 million additional expansion that will see Burberry increasing its retail space by at least an additional 14 percent in 2012 alone.
The Guardian also dubbed Mexico an important “up and coming luxury market,” a claim that is supported by the growing number of high end boutiques, such as Burberry, Louis Vuitton and more, which can be found throughout Mexico real estate, from popular vacation destinations such as Cancun and Playa del Carmen, to thriving inland urban areas such as Mexico City.
“We continue to believe that luxury goods represent a structural growth global industry, driven by rising disposable incomes in emerging markets, a growing number of high net worth individuals, the increasing spending power of working women and a growing propensity to travel,” analysts at Charles Stanley told the Telegraph.
Burberry currently operates one retail location in Cancun,Puebla and Monterrey, respectively, as well as two in Mexico City. The luxury brand plans to continue its global expansion, which will reportedly include opening additional locations in Mexico by 2013.