Primark in Mexico: Liverpool rules out converting Suburbia stores

Primark’s arrival in Mexico will not involve converting Suburbia stores. El Puerto de Liverpool ruled out that option during its third-quarter 2026 results presentation, explaining that it will fund the fashion chain’s rollout in stages while working with the brand’s international team to select its first locations.

Suburbia will retain its format

El Puerto de Liverpool’s Chief Financial Officer, Gonzalo Gallegos, said that Suburbia and Primark serve different customer groups and offer complementary propositions within the company’s portfolio, according to a report by Poder México on 27 October. For that reason, the group is not considering converting Suburbia stores to the Irish chain’s format.

This clarification sets out how Primark’s entry is being planned: it has not been presented as a replacement for Suburbia. The search for premises for the new brand is progressing separately, with locations assessed for their potential to maximise retail performance.

For those in the franchise sector considering the Mexican market, the decision offers a concrete indication of how an international brand is adapting to the country. In this case, Liverpool intends to add a fashion offering to its business while keeping it distinct from a chain already within its operations.

Phased investment funded by operating cash flow

Gallegos explained that the investment required for Primark’s rollout will be made in phases and funded entirely from the group’s operating cash flow. The company has not yet disclosed how much it will allocate to the expansion.

The announced approach draws a distinction between funding and implementation: Liverpool has stated where the money will come from, but has yet to disclose how much it will invest or how quickly it will open stores. No store count has been confirmed for the first phase.

The company is also assessing how to use its logistics network to support the new business. In addition, it is exploring options for integrating its consumer credit operations, according to the information published by Poder México. These remain possibilities under consideration, rather than services already announced for future Primark customers.

Locations are still being assessed

Liverpool is working with Primark’s global team to select premises for its first Mexican stores. According to Xataka México’s coverage on 30 October, the choice of locations will be crucial in determining both the timing of the launch and the pace of the brand’s growth.

As of the quarterly results conference, no cities, shopping centres or addresses had been confirmed. Nor had any opening dates been announced. The company said it aims to assess each location carefully to maximise sales.

The operation will combine Primark’s business model and international experience with Liverpool’s knowledge of Mexican consumers, property infrastructure and operational capabilities. Primark has more than 500 stores in 19 countries, according to Poder México, and focuses on affordable fashion and rapid stock turnover.

What remains to be confirmed

The partnership was announced on 10 September 2026 under a franchise model. During its third-quarter results presentation, Liverpool said it was still finalising the master franchise agreement and expected to sign it before the end of the year.

The company expects to share investment details and the pace of store openings at its fourth-quarter results conference. That will be the next opportunity to assess the scale of the rollout, beyond the decisions already announced on funding and retaining Suburbia’s existing format.

In practice: for franchise-sector readers tracking new brands, it is worth distinguishing announced commitments from plans still under consideration. Liverpool has set out a phased, internally funded rollout without converting Suburbia stores; locations, investment amounts and opening dates remain to be confirmed.