Mango plans to expand into the United States after withdrawing from China

By Corina Pons

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

Mango will focus on growing in the United States after two previous attempts failed, with a more expensive offering of clothing designed for special occasions and parties. It will target areas where internet sales are already strong.

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

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

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

The company plans to have 40 stores in the United States by 2024, up from 10 today. This would place the United States in its top five global markets.

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 operates four franchise outlets and sells over the internet through Alibaba’s Tmall e-commerce platform.

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

Mango posted record sales last year, helped by the sale of more items at higher prices. Its biggest competitor, the Zara brand, owned by fellow Spaniard Inditex, is expected to post record sales on Wednesday, in part 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 euro)

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