Background on Enrique Güijosa and Liverpool
Enrique Güijosa is the CEO of El Puerto de Liverpool, one of Mexico’s leading department store chains. With over 80 stores across the country, Liverpool plays a significant role in Mexico’s retail sector. Güijosa’s concerns about consumer spending reflect the broader economic climate in Mexico and its potential impact on businesses.
Güijosa’s Concerns About Slowing Consumer Spending
During the Retail Day México 2025 event organized by Deloitte and GS1 México, Güijosa expressed his worries about the deceleration in consumer spending in Mexico. He acknowledged that achieving the projected 5 to 6% growth in same-store sales for 2025 now seems challenging.
“We had expected the second half of the year to improve, but the truth is that the growth rates we are seeing are well below what we had planned… The target we announced at the beginning of the year now seems more difficult to achieve,” he stated.
Factors Contributing to Weak Consumer Spending
Güijosa attributed the sluggish consumer spending to Mexico’s stagnant economy, which has resulted in low growth projections of just 0.5% for the current year. Additionally, a decline in remittances from abroad and reduced formal employment opportunities have further dampened consumer confidence.
“For a while, consumption remained relatively resilient, but the destination isn’t reaching its full potential… We are observing that our customers are very selective with their spending, being cautious with their money and waiting for discounts,” he explained.
Optimism Amidst Challenges
Despite the prevailing economic uncertainty, Güijosa remains optimistic about a rebound in consumer spending during the crucial end-of-year shopping season, driven by holiday festivities and promotional events like El Buen Fin.
“We have strong plans, ample product assortment. So, I am optimistic that we can recover what has been lost in recent months leading up to the year-end shopping season,” he added.
Investment Strategy Amidst Economic Uncertainty
Güijosa emphasized that, despite the challenging economic environment and uncertain consumer spending, Liverpool will not alter its investment strategy. The company remains committed to investing in technology, supply chain improvements, and expanding its retail footprint.
Key Questions and Answers
- What is the concern expressed by Enrique Güijosa? Güijosa is worried about the slowing consumer spending in Mexico, which makes it difficult to achieve his projected 5-6% growth in same-store sales by 2025.
- What factors are contributing to weak consumer spending? The stagnant economy, reduced remittances from abroad, and fewer formal employment opportunities are dampening consumer confidence.
- What is Liverpool’s strategy to tackle these challenges? Despite the economic uncertainty, Liverpool remains committed to investing in technology, supply chain enhancements, and expanding its retail presence.
- What is driving optimism for end-of-year sales? The upcoming holiday season and promotional events like El Buen Fin are expected to boost consumer spending during the crucial end-of-year shopping period.
