One sign of the growth and maturity of Panama is the number of companies that choose to locate their businesses here. Not only does it provide concrete evidence of their faith in the local economy and business structure, it means ex-pats can find many of the brands and stores they find at home.
The latest retailer to announce expansion into Panama is popular clothing chain H & M, which is known as the second-largest retailer in the world. The Sweden-based retailer said last week that it would open its first store in Panama by the end of 2020, which will also represent the chain’s first move into the Central American market.
The company says it will launch its operation in Panama under a franchise agreement with Spanish clothing retailer Hola Moda SAs, Reuters reports. H & M has been plagued by slowing sales and shrinking profits, but “is now focusing new store openings to growth market,” the news service reports.
H & M is best known for offering fashionable clothes at affordable prices, which is always popular.
At this point, there are no firm plans to expand to other Central American countries, according to an H & M spokesperson. But that is not unusual. Many businesses typically use Panama City as the launching point for their Central America plans, since it is the most cosmopolitan and economically vibrant city in the region.
H&M currently has 51 online markets and stores in 74 markets, including Puerto Rico, Mexico, Chile, Colombia, Peru and Uruguay in Latin America.