British clothing brand Superdry opened its first store in Argentina this month, marking the latest entry by international retailers into the South American market. Ezequiel Garcia, whose company Tango Fabric holds the brand's licence for South America, first approached Superdry six years ago. After delays due to Argentina's economic conditions, the deal was finally signed in 2023.
Superdry's entry is part of a broader trend of global brands returning to or entering Argentina following President Javier Milei's economic reforms. Other recent arrivals include Decathlon, H&M, Victoria's Secret, Kiabi, Mango and Armani Exchange. A new shopping centre in upscale Buenos Aires neighbourhood Recoleta will feature international names including Marc Jacobs and Stella McCartney.
Despite the influx, companies weigh opportunities against weak consumer spending and policy risks. Private consumption fell 2.4 per cent in the second quarter, with retail indicators also weak. The economy contracted in the second quarter and household finances are under pressure.
Guillermo Oliveto of Consultora W notes Argentina was "off the map" for foreign retailers but is now "on the map." Martín Potito of Cushman & Wakefield says finding the right location is key, but purchasing power remains a challenge. The article is part of the special report "Investing in Argentina.".
Source: Financial Times Companies · Summarized by HeadlinesBriefing