The sales losses recorded in 2020 due to the pandemic were followed by a period of growth for many markets. However, economic difficulties in some countries have also been negatively impacting performances in recent years, most notably in Argentina in 2024. As inflation worries ease, countries in Latin America are expected to be recording positive growth in real value terms in the coming years, even if price sensitivity continues to be seen among some consumer segments.
This report comes in PPT.
Market polarisation continues to define the landscape in Brazil, with a clear divide between the premium and budget segments. High inflation and economic uncertainty have been driving price-sensitive consumers towards affordable, value-driven offerings, while affluent consumers are fuelling growth in the premium and luxury segments. Brands such as Arezzo and FARM Rio cater to this demographic by blending local identity with sophisticated aesthetics.
The overall performance in Latin American apparel and footwear was significantly impacted by the slump in sales in Argentina, where the local economy was struggling for a variety of reasons, including triple-digit inflation and a high tax burden on apparel items. Positive growth is expected from 2025, but sales will remain below their 2023 levels over the forecast period.
As Nike looks to regain some of the Mexican share it has lost since 2020, it recently opened its largest retail space in Latin America: Nike & Jordan World of Flight Mexico City. This 2,000 sq m outlet aims to seamlessly integrate retail with cultural and sporting elements, with Nike By You enabling personalised product designs and the Jordan Workshop creativity-focused events.
Store-based retailing still dominates sales in Latin American apparel and footwear, with e-commerce holding a 15% retail value share in 2024. Apparel and footwear specialists lead in most markets, although department stores remain the biggest channel in Chile. E-commerce made major gains in 2020, due to the pandemic, but has since lost some of these gains as shoppers resumed their former visits to physical outlets.
Apparel is the aggregation of clothing and footwear. This dataset covers retail sales of apparel through both store-based retailers and non-store retailers. Excludes black market sales (i.e. untaxed, generated within informal retailing)and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded.
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