The Birth and Evolution of Mexico’s Retail Icons
During the 1920s and 1930s, as Mexico rebuilt itself after the Revolution, numerous businesses emerged that now form the DNA of national commerce. Back then, retail thrived in the hearts of large cities—Mexico City, Guadalajara, and Monterrey—where streets served as the meeting point between vendors and customers. There were no malls, chains, or corporations; only small shops, counters, and families with foresight.
From Corner Stores to National Icons
Many of these businesses began in a corner, with brothers or cousins joining forces to open a small shop and sell what they knew best. These stories, now over a century old, continue to unfold.
Few brands exemplify this transition as well as Liverpool, which was established in 1847 when Jean Baptiste Ebrard, a French immigrant, opened a small clothing store in the Historic Center. The name came years later, inspired by the English port where merchandise arrived. Today, nearly 180 years later, Liverpool not only survives but leads the way. Its ability to reinvent itself—from brick-and-mortar stores to e-commerce, from printed catalogs to apps—mirrors its multigenerational vision.
Other Iconic Retailers
Alongside Liverpool, other icons have surpassed nine decades of history: El Palacio de Hierro (founded in 1891), La Europea (1874), and El Nuevo Mundo, which made waves in the 1930s. In the north, Farmacias Benavides and Casa Chapa in Monterrey or La Gloria in Guadalajara were local references that grew alongside their cities.
Nostalgic Tales of Retail
However, not all stories made it to a century. Mexican retail is also filled with nostalgia. Gigante, for example, was a symbol of the Mexican middle class for decades. Founded in 1962 by Ángel Losada, it reached over 200 stores before being sold to Soriana in 2007. Tiendas Blanco, specialized in clothing and home goods, experienced a boom in the 80s and 90s but couldn’t withstand new formats. Comercial Mexicana, which for years synonymized promotions and “Julio Regalado,” was eventually divided and acquired by La Comer and Soriana.
The Most Symbolic Transformation: Aurrerá
The most symbolic transformation story is Aurrerá. Founded in 1958 by the Arango brothers in a corner of the Historic Center, it began selling affordable shirts. Their bet on providing value to Mexican families marked the beginning of modern self-service. Decades later, their vision evolved into Walmart de México and Centroamérica, now the country’s largest retailer.
Key Factors for Longevity
Achieving or nearing a century in retail isn’t accidental. Long-lasting companies share a formula: vision, structure, and generational evolution. The first generation is the dreamer and founder. The second brings professionalism, formalizes processes, and solidifies the brand. However, the third generation is the most challenging: it decides whether the company transcends or fades away.
Many Mexican companies failed to pass the second or third phase. Some may not have prepared their succession well, while others might be trapped by pride or family conflict. The market doesn’t forgive a lack of coordination and evolution.
Crucial decisions include whether to remain private, go public, or sell. Each path has its risks and rewards. Going public means professionalization, openness to supervision, and attracting capital. Staying private gives control but may limit growth if the family doesn’t renew itself. Selling, though painful, sometimes ensures brand continuity under new leadership.
The Blend of Past and Future in Retail
Today’s retail is a fascinating mix of past and future. Century-old giants coexist with new digital native players. While the former bring tradition, trust, and structure, the latter offer agility, data, and omnichannel capabilities.
Key Questions and Answers
- What makes some retail companies last for a century? Long-lasting retail companies share a formula: vision, structure, and generational evolution.
- What challenges do multi-generational retail companies face? The third generation, responsible for deciding whether the company transcends or fades away, often faces challenges due to lack of preparation for succession, pride, or family conflict.
- What are the key decisions for retail companies regarding their future? Crucial decisions include whether to remain private, go public, or sell. Each path has its risks and rewards.
