Mexico City

MiamiMexico City, the ancient Aztec capital and heart of colonial New Spain, is the world’s second largest urban area, home to more than 20 million people. The city features both new and old traditions. Likewise, both home grown and international retailers thrive here. Among the vibrancy that typically characterizes an emerging market, Mexico’s history stands alongside modernity here, giant shopping malls neighboring traditional shopping markets.

Both mass and luxury retail are prevalent Mexico City, mirroring the market’s purchasing power, which spans all income levels. The average per capita income of US$25,200 is among the top for the developing world. Living at this crossroads of old and new-world traditions, Mexico City´s people are open and avid consumers, willing to try what the world has to offer. As such, hundreds of international brands have established footholds in the market, opening both expanded and petite versions of their typical footprints. A retail laboratory indeed, Mexico City is not only the tip of the spear for many international retailers’ Latin America market entry strategy, but also the birthplace for most Mexican national retailers, many of which are now expanding across the Latin world and beyond.

Mexico City is also leading the country’s recovery. New developments have resumed construction and rental rates are trending upward, mirroring the transformative power of the city.

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POLANCO: 19.433333, -99.200000
HISTORIC DISTRICT: 19.429257, -99.133462
INSURGENTES: 19.423626, -99.162791
SATÉLITE: 19.507703, -99.236990
PERIFÉRICO SUR: 19.303964, -99.190533
SANTA FE: 19.374629, -99.264180
INTERLOMAS: 19.402746, -99.272079
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Since its origin in the 1950s, “Satellite City,” the first official suburb in the metro area, has been a compelling location for mass retailers willing to introduce innovative shopping experiences and concepts. These include the first large shopping mall, Plaza Satélite in1970, the first entertainment center, Mundo E in1990, and a large number of power-centers and family-oriented brands that target the middle classes and the significant density in working class northern Mexico City.
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The southern section of Mexico City’s ring road borders many of the most reputable and affluent residential areas in the city. Its fashion malls, led by Perisur at the top, enjoy a prestigious metropolitan reach. Several small-sized boutique shopping centers complete the picture for this motor-oriented area.
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Interlomas’ malls, stores, and supermarkets satisfy the ever-growing demand generated by the continuously expanding residential development of the area. Interlomas is clearly a family hub. Its diverse retail lures a young upper middle class
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Insurgentes avenue is more than 10 miles long and runs as a north-south axis for Mexico City’s central area. The southern half features several corporate buildings as well as residential and retail complexes catering to a high density of middle class consumers.
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The “Centro Histórico” is a world heritage site listed by UNESCO. The old core of the city preserved its high volume of business activity, with dozens of streets specializing in a specific line of retail. The city government’s efforts to revitalize the zone are attracting an historically high number of tourists and an unprecedented amount of investment.
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Home of fashionable Masaryk street, luxury retailers take advantage of the pedestrian accessibility of this central business area neighborhood to showcase their brands. Leafy parks and high-connectivity help this market stand out as a fashion hub for the upper class.
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Santa Fe is a large corporate area with cutting-edge office projects and a growing number of residential developments. Intended to be a display of modernity, the development of the area had resulted in a car-oriented district and with big shopping centers, including Santa Fe Mall boasting 10,000 parking spaces and the largest gross leasable area (GLA) in Latin America.

PolancoLocal business density, Local shoppers, TouristsLiverpool, El Palacio de Hierro, Saks Fifth Avenue, Louis Vuitton, Cartier, GucciTory Burch, Crate & Barrel, Aeropostale$27-110 PSF/YR1,000-150,000 SF
Historic districtLocal business density, TouristsLiverpool, El Palacio de Hierro, ZaraPineda Covalín$12-110 PSF/YR500-50,000 SF
InsurgentesLocal business density, Local shoppersLiverpool, Sears, SanbornsBest Buy$15-50 PSF/YR500-100,000 SF
Satélite Local shoppersLiverpool, El Palacio de Hierro, Costco, Sam’s ClubBest Buy$17-$40 PSF/YR500-150,000 SF
Periférico SurLocal shoppers, Local business densityLiverpool, El Palacio de Hierro, Louis VuittonAeropostale, Theory, Officina Slowear$22-70 PSF/YR1,000-150,000 SF
InterlomasLocal shoppersLiverpool, El Palacio de Hierro, CostcoGAP, Forever 21, Crate & Barrel$20-50 PSF/YR500-150,000 SF
Santa FeLocal business densityLiverpool, El Palacio de HierroGAP, American Eagle, Express$22-70 PSF/YR1,000-150,000 SF

Data as of May 2016

Mexico City is the melting pot of the varied and rich regional cuisines of Mexico. It is also a cosmopolitan city with splendid representatives of culinary traditions from all over the world.

From omnipresent outdoor food stands to fine brasseries, a diverse stock of venues fill a variety of formats, but they often require highly specialized conditioning, be it a large playground for children, a complex drive-in, or a zen garden.

Most residents like the convenience of a fine-dining experience near their homes, but the residents of Mexico City are willing to fight traffic and take a long trip to enjoy their preferred taco stand. Exposure is as important as location, but flavor and ambiance trump both.

Fusion chefs find Mexican food a good context, and while there is a constant import of international culinary concepts such as Nobu, some concepts are exported abroad, as Sushi-Itto demonstrates.

Newcomers to market experience a challenge finding the right locations, but some areas have clustered a large number of preferred eateries. The Historic District has a long and rich tradition. For example, the Hostería de Santo Domingo has been serving customers since 1860. Condesa has a relaxed atmosphere luring a young crowd at its many bistros such as Merotoro. San Angel caters to businessmen, families, and tourist alike at famous venues like San Angel Inn. And Polanco has a long list of fine-dining examples such as Pujol and Biko, numbers 17 and 31 respectively in the 2013 S. Pellegrino list of the World’s Best Restaurants.

Polanco Business density, residential population, touristsBiko, Pujol, Quintonil, Sir Winston Churchill’s, Au Pied de Cochon, Brasserie Lipp, Astrid y Gastón$30-100 PSF/YR
Historic DistrictSecondary retail, tourists, business densityEl Cardenal, Café Tacuba, La Opera, Los Girasoles, La Casa de las Sirenas, Hostería de Santo Domingo$15-100 PSF/YR
Condesa Residential population, business density, touristsMerotoro, Contramar, Brasserie O, SEP, Rexo, El Diez, Agapi Mu, Thai Gardens$15-40 PSF/YR
San AngelBusiness density, residential population, touristsSan Angel Inn, Paxia, Mandarin House, Saks$25-40 PSF/YR

Data as of May 2016