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40 Big Brands Likely Returning To Argentina With The Government Change

Javier Hasse

  • A few weeks ago, Argentina had its first-ever presidential runoff.
  • Center-right wing candidate Mauricio Macri (and his party, Cambiemos) won with roughly 51.3 percent of the votes, while the center-left wing candidate (with the current ruling party, Frente Para La Victoria) received about 48.6 percent of the votes.
  • Ahead of Macri’s takeover on Thursday, more than 40 international clothing brands and several restaurant chains announced they would be opening stores in the country soon.
  • Over the twelve years that Néstor Kirchner and Cristina Fernandez ruled Argentina, social legislation was a priority for the government and advancements were substantial. However, the macroeconomic policies that supported the social initiatives were apparently not making foreign investors very happy. This was evidenced by the departure of several major international brands like LVMH Moet Hennessy Louis Vuitton SE(ADR) (OTC: LVMUY), Armani and Calvin Klein, due to the impossibility to import their products into Argentina.

    Nonetheless, the change of government seems to have led many of these companies to reconsider, or at least, to feel more optimistic about investing in the South American country. According to an article published on Spanish-language news site , Forever 21, one of America’s favorite fast-fashion chains, will be among the first to return; the company is already negotiating with Irsa Inversiones y Rprsntcins SA (ADR) (NYSE: IRS), IRSA Propiedades Comerciales SA (ADR) (NASDAQ: IRCP) to open its first store in one of the company’s shopping malls, Alto Palermo.

    Related Link: Analyst Shares His Favorite Argentine Stocks

    Names Likely To Return To Argentina

    A study conducted by consulting firm Colliers International listed the following names as interested in setting up shop in Argentina soon:

    According to Colliers and consulting firm Surreal, Buenos Aires counts on the demand for such goods.

    In addition, several fast food chains are expected to arrive to the country quite soon, among which include:

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

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