Report of the
Board of Directors
To our Shareholders:
In 2023, El Puerto de Liverpool’s revenue grew 11.3% over the previous year, reaching $195.99 billion pesos.
During the year, business model initiatives in merchandise, credit, insurance, logistics, omnichannel, and Customer services were fundamental in creating a better shopping experience and Customer satisfaction.
In the Retail segment, revenue amounted to $175.19 billion pesos, a 10.1% increase over the previous year. Same store sales were up 8.6% for Liverpool and 4.7 for Suburbia.
At Liverpool, personalized Customer service remains our main differentiator. We continue to focus on strengthening omnichannel capabilities, offering our Customers a unique shopping experience. In our stores, our “Sentido de la Experiencia” (Sense of the Experience) program focuses on a “Yes, we have it” attitude.
We offer Customers value-generating solutions that make their daily lives easier: free home delivery, Click & Collect, Marketplace, Beauty Experience, Gourmet Experience, Geek Zone, among others. These solutions set us apart from the competition and safeguard our leadership in the key categories in which we operate.
The Liverpool brand is constantly renewing itself, attentive to current store design trends and more compelling merchandise displays to enhance sales potential and offer comfort and functionality to our shoppers. At the beginning of the yearwe opened a new store, Liverpool Parque Tepeyac, in Mexico City.
This year, we delivered over 22 million orders placed through digital channels —a 17% increase over the previous year.
We introduced Liverpool Express, a new 400-square-meter format that offers Click & Collect, credit, insurance, and merchandise selected especially for the geographical area it serves, to reach more people and market segments. By the end of 2023, we had 17 of these locations.
Throughout the year, Suburbia continued to evolve and change. Strategic initiatives such as the update of private labels, signage, visual presentation, department layout, commercial offering, self-service and staffed checkout, continued to progress successfully.
The launch of “Rediscover Suburbia” campaign invited shoppers to experience the new offerings we have prepared for them. To strengthen our presence in Mexico, this year we opened ten new stores, bringing the total to 186 at the end of the year.
Liverpool’s digital sales grew by 26% with a share of 26%. Marketplace stands out by growing 62%, and accounting for 15% of digital sales. Suburbia’s digital sales meanwhile increased by 50%.
We expanded our offering to over 800,000 SKUs for sale through digital channels. At Suburbia, digital sale kiosks were installed in 115 stores, and 100% were enabled as fulfillment points.
By the end of the year, our apps had ten million active users, a 15% growth compared to the previous year.
We served more than 14 million Customers during the year through virtual platforms and via telephone in our call center located in Morelia.
This year, we delivered over 22 million orders placed through digital channels—17% more than in 2022—43% of which were delivered within a maximum of two days, an improvement of two percentage points.
The first phase of our new Arco Norte Logistics Platform (PLAN) ramped up with the operation of the big-ticket unit, which covers an area of 277,157 square meters.
Service capacity increased by 70% with the incorporation of processes from Liverpool, Suburbia, and Boutiques for furniture, appliances, and electronics.
The construction of the new softlines warehouse has begun and is expected to start operations in the first half of 2025.
Regarding the credit card, improvements were implemented in the platform to enhance the visibility and accessibility of credit products.
For greater Customer security, new ID verification technology was introduced in the credit application process and other services.
Currently, 45% of new credit accounts originate through digital channels.
In Suburbia, we introduced a biweekly payment system called “Minipagos” nationwide.
of digital sales were delivered via Click & Collect
We launched a pilot savings and investment plan for employees in partnership with Actinver.
In the digital channel, we enabled a new feature for our cardholders called “Livercash” by which they can use their Liverpool cards to withdraw cash and ask for personal loans.
Our insurance business reached a record number of 3.1 million active policies, an 11% increase over the previous year. In Marketplace insurance, we expanded our product shelf with the successful introduction of five new types of insurance to broaden the range of options available to our Customers.
The Financial Businesses division reported a 23.2% growth in revenues. Careful credit risk management brought the loan delinquency rate to a low level of 2.7% at the end of the year, while the non-performing loan coverage rate ended at 3.4 times.
Thanks to our continuing growth strategy, this year El Puerto de Liverpool had more than 7.2 million credit accounts. By business, there were more than 5.6 million Liverpool cards and 1.6 million Suburbia cards.
Our Galerías Shopping Centers closed the year with an occupancy rate of 92.3%, two percentage points higher than at the end of the previous year. Total revenue grew 2.18% and the loan delinquency rate returned to its pre-pandemic levels.
growth in revenue for the Financial Businesses division
4 new
bachelor’s degrees
Net earnings were $19.49 billion pesos, 12.1% higher than the previous year.
At the end of the fiscal year, we had a net cash position of $29.81 billion pesos, the result of good operating performance and working capital management.
Investments totaled $8.62 billion pesos, 48% of which was allocated to logistics projects, 11% to openings, and 8% to IT projects.
We paid $8.59 billion in income tax, an increase of 22.0% compared to the previous year. Other taxes withheld and paid, import duties and taxes, along with employee contributions paid out to IMSS, SAR, and INFONAVIT, totaled $17.33 billion pesos.
Liverpool owns a 50% stake in Grupo Unicomer, a company that sells furniture, electronics, household items, motorcycles, optical products, and consumer credit in 26 countries in Latin America and the Caribbean, with 25 commercial brands and more than 13,000 employees.
In 2023, we renewed our commitment to excellent service and worked to create meaningful work experiences for our employees.
To bolster our strategy, we introduced regional salary distinctions and strengthened professional and personal development initiatives with training in service, leadership, diversity and inclusion, cybersecurity, and ethics.
billion pesos in investment, 11% for openings
We were also named the best company in the Supermarkets and Department Store industry for our capacity to attract and retain talent in Mexico, and one of the top 30 companies in the country in the Merco Talent ranking.
In 2023, we appeared for the first time in the World’s Best Companies ranking by Time magazine and Statista, a market research provider. We ranked 294 out of the 750 companies considered, and 4th among the 11 Mexican companies listed.
The IGDS (Intercontinental Group of Department Stores), which recognizes cutting-edge and innovative department stores, awarded Liverpool second place in 2023.
On September 25th, we became the first publicly traded company in Mexico to exchange more than 836 physical share certificates for digital series 1 and C-1 certificates, meeting the most exacting security standards and guaranteeing the integrity and authenticity of the information.
In the Ordinary Annual Meeting held March 16, 2023, our shareholders approved a dividend of $3.50 billion pesos, distributed among each of the 1,342,196,100 shares representing the company’s capital stock.
This Integrated Annual Report is accompanied by a Limited Assurance Letter from PricewaterhouseCoopers, S.C. The documents and information that have gone into this report are aligned with international standards such as SASB, GRI, TCFD and the SDGs, a reflection of El Puerto de Liverpool’s commitment through our Footprint Strategy.
Over the past year we proved our capacity to grow and the way we build experience in the organization and our operations. In our omnichannel approach, Customers have found a way to meet various needs by interacting in the channel they prefer. The company’s finances once again showed their solidity and the growing profitability and vitality of our Group.
We are deeply grateful to our shareholders, Customers, suppliers, tenants and employees for their confidence and trust.
Sincerely,
The Board of Directors
Mexico City,
December 31, 2023
