Spanish retailer Mango will open 60 new U.S. stores to boost its brand presence

Spanish retailer Mango is embarking on a bold expansion strategy in the United States, aiming to shed its fast-fashion image and reposition itself as a premium brand. Headquartered in Barcelona, the privately held company plans to open 42 new stores across the U.S. by the end of 2024, with an additional 20 stores set to launch in 2025. The company will focus its expansion in high-growth areas, particularly in the Sun Belt and Northeast regions, according to Mango’s CEO, Toni Ruiz, in a recent interview with CNBC.

The $70 million expansion plan is a significant commitment for the company, which includes the construction of a new logistics center just outside of Los Angeles and the creation of approximately 600 new jobs. As a result, Mango’s U.S. workforce is expected to grow to about 1,200 employees by the end of next year. Ruiz emphasized that this expansion is part of a long-term strategy and pointed out that the company will also seize the opportunity to open larger stores, some of which will feature expanded collections for men and children.

Mango’s U.S. sales have already grown by over 10% this year, and the company expects to maintain this momentum with double-digit growth in the coming year. Although Spain remains Mango’s largest market, the retailer is keen to further increase its sales in the U.S. and break into the top three global markets for the brand. As part of its larger growth plan, Mango aims to raise its annual sales from approximately 3.1 billion euros to 4 billion euros by 2026.

Known for its chic, European-inspired basics, Mango is focusing on elevating its brand and distancing itself from the fast-fashion category. The company’s design process is notably thorough, taking between seven and eight months, with every item being designed in-house in Barcelona. Ruiz emphasized that the brand prides itself on having complete control over the design, patterns, and fittings of its products. With a dedicated team of 500 people overseeing every aspect of product development, Mango is pushing for greater creativity, quality, and design, while also refining its pricing strategy to offer an even more compelling product to customers.

A key element of Mango’s growth strategy in the U.S. is expanding its physical store presence. Ruiz explained that having more stores allows the company to build a closer connection with consumers and better tell its brand story. Mango’s move to strengthen its U.S. presence follows the example of other international brands, such as H&M, Zara, and Uniqlo, which have all targeted the U.S. market as a key growth area. These companies are vying for a share of the American consumer market, where households typically spend an average of $2,000 annually on clothing, according to a Lending Tree study.

Mango has already opened stores in locations such as Pennsylvania, Washington, D.C., and Massachusetts, but its next phase of growth will focus on the Sun Belt, driven by insights derived from the company’s e-commerce platform. With Mango’s online sales accounting for about 33% of its total revenue, the company uses data from its website to understand customer behavior, including where shoppers are located and what they are purchasing.

Ruiz acknowledged the challenge of expanding in the U.S. market, noting that each state in the country is distinct, much like a different country in Europe, with varying customer preferences and fashion sensibilities. To address these differences, Mango is proceeding with a thoughtful, step-by-step approach to expansion, ensuring that the brand’s offerings meet the diverse needs of U.S. consumers across various regions.