The Spanish retailer, Mango, plans to open 60 new stores in the US in an effort to enhance its brand image.

• As part of a broad expansion plan, the privately held Spanish retailer, Mango, is currently opening over 60 new stores in the U.S.
• The company aims to elevate its brand image and move away from its fast-fashion label.
• "CEO Toni Ruiz stated to CNBC, "We aim to elevate our brand by emphasizing our creativity, design, and unique style. Our customers value these aspects, so we are pushing hard in terms of quality, design, and even pricing.""

Mango, a Spanish retailer, is launching a daring expansion plan in the U.S. to shift its image from fast-fashion to a premium brand.

Mango, a privately held company based in Barcelona, plans to open 42 new storefronts in the U.S. by the end of the year and aims to launch 20 more in 2025, primarily in the Sun Belt and Northeast, as CEO Toni Ruiz revealed in an interview with CNBC.

The company plans to expand with a $70 million budget, which includes building a new logistics center outside of Los Angeles and hiring approximately 600 new employees, increasing its U.S. workforce to around 1,200 employees by next year.

Ruiz stated that the commitment to this project is long-term. Additionally, he pointed out that there is an opportunity to establish larger stores in the U.S. Mango will open multiline stores that include men's and children's items.

In the U.S., Mango experienced over a 10% increase in sales this year and anticipates another year of double-digit growth.

Mango's largest market is currently its home base in Spain, but the company aims to increase sales in the U.S. to become one of its top three markets as part of a larger strategic plan to reach 4 billion euros in annual sales by 2026.

Mango, renowned for its European style basics, aims to rebrand itself as a premium label and communicate to customers that it is not a fast-fashion brand. The design process at Mango takes between seven and eight months, and all designs are created in-house in Barcelona, according to Ruiz.

"Ruiz stated, "We have all the design, patterns, and fittings internally, which is crucial for us. We have 500 people taking care of the product from start to finish. Our goal is to elevate our product, which means we value creativity, design, and our unique style. We are pushing hard to improve not only in terms of quality, design, but also prices because our proposal is getting better.""

Mango's U.S. growth plans are centered on stores as a physical presence will enable the company to connect with its consumers and communicate its message in a fresh manner, according to Ruiz.

The company is following in the footsteps of international competitors such as H&M, Zara, and Uniqlo, who have turned to the U.S. market for growth. These companies are all vying to capture the average American household, which spends approximately $2,000 annually on clothing, according to a Lending Tree study.

Mango has opened stores in Pennsylvania, Washington, D.C., and Massachusetts, but is now focusing on the Sun Belt for its next phase of growth, based on e-commerce insights.

Ruiz stated that Mango's website accounts for approximately 33% of overall sales and aids the retailer in identifying where its customers are shopping and what they are purchasing.

"Ruiz stated that it is a significant challenge for them because they comprehend that each state in the U.S. is similar to a country in Europe. As a result, they must take into account the customer's preferences and the way they dress. To understand the differences between the states, they are taking a step-by-step approach."