The aggressive expansion plan in Chile of the Mexican retail Grupo Axo
RIO DE JANEIRO, BRAZIL – With a 28-year history in the retail industry, Grupo Axo, one of the most prominent brand representatives in Mexico, is already preparing its artillery for 2022, aiming to expand geographically through points of sale but also increasing its presence in the digital format.
Precisely to achieve the objective of promoting its e-commerce is that the company that represents brands such as Arrow, Brooks Brothers, Calvin Klein, Tommy Hilfiger, Victoria’s Secret, Old Navy of The Gap, among others, signed Benoit de Grave, an executive who was in charge of the Falabella marketplace.
Read also: Check out our coverage on Chile
It is not a minor challenge since the group operates about 12 digital channels of the brands it represents in the Aztec country. In 2019 they announced the purchase of the shares of Privalia, an e-commerce platform that specializes in online sales with discounts on fashion and accessories.
However, the company also seeks to expand in the other country where it has a presence: Chile.
THE PROJECT PORTFOLIO
Joaquín Chandía, country manager for Grupo Axo in Chile, says that the company landed in the country in 2014 when they brought Victoria’s Secret beauty and accessories section. They did the same with Bath & Body Works, which offered beauty and bath a year later.
According to the executive, the company has outlined a series of steps for this year with which they aim to increase its presence, both in Santiago and in the regions.
He anticipates that if they currently have 15 points of sale in Chile (seven of them are from Bath & Body Works), they plan to open five additional centers this year.
In parallel, as in Mexico, they aim to continue developing the digital channel in Chile since they launched the Bath & Body Works channel in 2020 and Victoria’s Secret channel last year.
Although Chandía points out that it is not an alternative to consolidate both brands on a single platform – as Falabella did – they do want to add the option of the omnichannel format.
“In digital matters, we are working on several things. We will have the alternative of withdrawal in stores for the first time. In fact, Bath & Body Works is launched this week, and we hope that we will launch Victoria’s Secret within the first quarter. We are also working on strengthening our logistics chain with more technology and reducing dispatch times,” says the executive.
During this time, the penetration of the online channel of Grupo Axo’s total sales in Chile is more significant than two digits.
In another path, Chandía points out that the group’s expansion also considers bringing new brands to the country.
“We have a plan to bring new brands to Chile. There are still brands of the group in Mexico and have no presence here. There is a goal of bringing two by the end of this year and the beginning of 2023,” he adds, although he preferred not to give know the names.
For the time being, they will continue to develop current brands. Victoria’s Secret recently opened its second large store, a branch located in the Costanera Center.
NEW MARKETS
In another path, Grupo Axo’s country manager for Chile highlights that the company “is also interested in expanding into other countries of the southern cone,” He names Peru and Uruguay.
He adds that the group is negotiating the purchase of an Uruguayan company, “but I still cannot anticipate much of that, although there are plans to grow on the southern side of the region.”
“Grupo Axo is constantly growing, whether developing the brands it currently operates or incorporating. The issue of growth is in the company’s DNA,” he points out.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief