What happened to Paris, the department store that competed with Falabella and Ripley?


memory chain paris shopsIn which you could get everything from clothes to toys. Therefore, it was a direct competition from the Chilean companies Falabella and Ripley, which were apparently strong in the Peruvian market. After spending nearly seven years in the country, the Senkosud group decided to close the doors of your establishmentsWhile his workers saw an uncertain future.

Despite the fact that many experts have launched various theories about the cause of the Paris bankruptcy in Peru, the truth is that in 2016 department stores outsold other companies that also have a presence in Chile and Peru. . According to the Modes portal, the sum of earnings between the two countries exceeded its competition: it secured $462.7 million, while Ripley and Falabella received $1,770.6 million and $4,195 million, respectively.

What happened to the Paris store of the Sencosud Group?

In 2020, Directors of Paris announced the closure of its stores in Peru, while branches in Chile will merge into the Johnson store chain. In addition, he assured that the occupied premises in the national territory would be returned to their owners and that their workers would be transferred to other brands of the Sencosud group, if they so desired.

Paris opened its first store in Arequipa. Photo: Modes

Certainly after the closure, hypotheses began to emerge from marketing experts, who assured that their strategy to reach users was inefficient compared to other Chilean companies, and this was reflected in sales, as Falabella grew with nearly 46% in 2019. Closed, while according to consulting firm Euromonitor, Ripple followed it up with 27%, Oechsle with 11% and Paris with 8%.

As you remember, the Paris store reached Peru in 2013 with its first installation in Arequipa, then it reached Cajamarca, Ica and finally Lima. Two years later, it already had nine branches in the country, which attracted attention for its wide area, as the one located in the Jockey Plaza shopping center was considered the largest as it had 10,000 square metres.

According to Percy Vigil, the former general manager of Megaplaza, Paris had a weak strategy to enter Peru. “Paris should have opened stores first in Lima, where the bulk of consumption is found, and not start with the provinces,” Explained to Peru Retail.

After spending nearly seven years in Peru, Paris decided to close its stores. Photo: Fashion Network

Has Paris never opted for an alliance with a shopping centre?

The pandemic must have been a determining factor for Senkosud Group’s stores to cease to exist in the country, as sales did not meet managers’ expectations. In addition, not tying up with the shopping center played against him.

“These big brands (Falabella and Ripley) had their own growth generators with Mall Aventura Plaza, an alliance they later dissolved, while Paris and Ochsley lagged behind, but the latter saw its growth with the Real Plaza”. said Juan Manuel Muoz, general manager of A&M Management and Development for the said portal.

Paris, on the other hand, also did not launch a virtual channel to serve its customers. “An e-commerce store would have helped bridge the deficit,” Munoz said. Finally, the Senkosud card, which was used to make purchases on credit at a chain of stores, did not hold the necessary relevance among users.

Who owns Larcomer?

Currently, Larcomer is owned by a Chilean real estate company, Parque Arauco, which was acquired on July 6, 2010. Other companies that are related to Parque Arauco are Megaplaza (Independencia), Megaplaza Express (Villa El Salvador), Parque Lambramani (Arequipa), El Quinde (Cajamarca), Viamix (Chorillos), OULETARAUCO (Lurin) and more.

When was Larcomer founded?

Larcomer Shopping Center was inaugurated on 27 November 1998 by architect Eduardo Figari Gould. $60 million was invested in this popular mall after being shortlisted in the first edition of the Latin American Architecture Award “Rogelio Salmona: Open Space/Collective Space”.

Larcomer is one of Parque Arauco’s properties. Photo: Andean

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