El Palacio De Hierro Luxurifies the Mexican Dept. Store
After extensive refurbishments, El Palacio de Hierro has reopened its Mexico City flagship with a 650,000 sq ft concept that makes it the largest and most luxurious department store in Latin America.
Located in the upscale shopping district of Polanco, the Mexican store offers international and local luxury fashion, beauty and accessories, as well as key global technology brands. The concept was designed by a trio of architects – US firms Gensler and TPG Architecture, and Mexican firm Sordo Madaleno.
The space targets the city's affluent tourists, as well as Mexico's growing upper-middle class. The country's luxury goods market rose by 11% in 2014 to $14bn, and the region is currently experiencing a groundswell in consumer spending; retail sales rose by 6.4% in October 2015 alone thanks to record-low inflation and recent economic reforms.
Attuned to the booming retail trend towards 'concierge culture', services largely borrowed from the hospitality sector are key to the store's reinvention. It boasts two helipads, two lavish restaurants and an on-site tax-refund office, as well as a dedicated shopping team orchestrating personal in-store sessions or hotel visits, and travel-friendly opening hours. It also commissioned a bespoke store scent for the relaunch.
For those interested in browsing the store pre-visit, there's a Google Maps-enabled virtual tour, although it is not yet shoppable. To read about monetised virtual replicas, see Virtual Added Value, part of our New-Era Luxury Macro Trend, and Physi-Virtual Flagship: Ted Baker.
For more on the rise of concierge culture in retail, see The Streamlined Sell, part of our Industry Trend Roaming Retail, as well as Harvey Nichols Dept. Store Reboot. For more on the evolution of large-scale, multi-brand stores, see Mall Worlds, Digitising the Department Store and Redefining the Department Store: Store Concepts.