El Palacio de Hierro records stellar growth in 2023

What: El Palacio de Hierro, a prominent department store group, reported an 11% increase in sales and a 41% rise in profit for the fiscal year 2023.

Why it is important: This significant growth, particularly in the online channel, underscores the company's successful adaptation to digital retail trends and its strong position in the competitive department store market.

El Palacio de Hierro, a key player in the department store sector and part of Grupo Bal, has showcased remarkable financial performance in 2023. The company achieved a turnover of USD 3 billion, marking an 11% increase from the previous year, and a net profit of USD 145 million, up by 41% compared to 2022. A notable driver of this success was the online channel, which saw a 28% increase in turnover, largely fueled by the launch of a mobile application. The company's EBITDA also rose by 15% to USD 400 million. These achievements significantly outpaced the industry average, with El Palacio de Hierro's sales growth more than double the 4.4% annual increase reported by the National Association of Self-Service and Department Stores (Antad) for the department store segment. Operating fourteen warehouses across Mexico and exclusive distributorships with luxury brands, El Palacio de Hierro, under the leadership of Juan Carlos Escribano, continues to solidify its market dominance.