Falabella Announces Record US$900 Million Investment for 2026

Grupo Falabella announced a record investment plan of US$900 million for 2026, a 40% increase from the US$650 million deployed in 2025. The Chilean multinational retailer said the funds will prioritize the transformation of existing physical assets and the opening of 17 new stores across Latin America as part of a multi-year growth strategy.

Alejandro González, CEO, presented the plan, highlighting that 2025 delivered historically strong results and a broad-based recovery across all business units. The 2026 allocation represents the largest single-year investment in Falabella’s history and reflects a strategic shift toward optimizing high-performing retail spaces and strengthening operational efficiency.

Strategic Focus on Physical Assets

Of the total US$900 million, approximately US$500 million will be allocated to the transformation, expansion, and modernization of existing stores. González said current retail dynamics favor enhanced customer experience over sheer selling space. “Today, customers are not only looking for products, but for experiences,” he said. “We do not need more square meters to grow sales, but better square meters.”

This strategy builds on the group’s 2025 approach, when it invested US$359 million in similar initiatives. Falabella plans to continue modernizing shopping centers through its Mallplaza unit, which recently consolidated its presence in Peru.

Regional Expansion and New Openings

The 2026 plan includes the opening of 17 new stores, up from the 15 units opened during 2025. The expansion targets the group's five primary business units: Sodimac, Falabella Retail, Tottus, Banco Falabella, and Mallplaza.

Key regional priorities include:

• Mexico: Continued expansion of Sodimac and diversification of the Banco Falabella product offering.

• Peru: Strengthening Tottus’ physical footprint and improving profitability in financial services.

• Chile: Addressing challenges in the construction sector affecting Sodimac, while accelerating third-party e-commerce growth through Falabella Retail.

In parallel, the company noted that it invested US$166 million in 2025 to enhance technological capabilities and logistics, reinforcing its leadership in categories such as fashion, beauty, and home décor.

Financial and Operational Outlook
Falabella’s capital expenditure trajectory has accelerated sharply, rising from US$508 million in 2024 to US$650 million in 2025, and now to US$900 million planned for 2026. Management said consumer demand across the Andean region has stabilized, supporting what it described as a “particularly positive” outlook for the coming fiscal year.

In 2025, the group reported a 9.4% increase in sales, consistent with mid-year performance trends. Department store revenues alone exceeded US$550 million during the year.

Across its diversified portfolio of retail and financial services, Falabella generated total revenues of approximately US$10 billion. Operating performance also improved, with EBITDA reaching US$1.43 billion and margins expanding to 14% from 11% a year earlier. Net earnings nearly tripled over the first three quarters of 2025, rising from about US$278 million to US$765 million.