The market is also underpenetrated. While Milano already has impressive coverage, there are still 120 cities with populations of 50,000 to 200,000 where it is not yet present, offering significant potential for further expansion. The company also sees the opportunity to open additional stores in mid-sized to large cities where it is already present but where demand can justify more outlets.
"Milano is an extremely well-known brand in Mexico," said Alfredo Alfaro, a Director in Advent International's Mexico City office. "It is the dominant player in the discount family apparel segment and has demonstrated consistently strong performance over the past decade. We believe the company has excellent prospects for continued growth through both enhanced store productivity and the rollout of new stores."
To help drive Milano's expansion, the investor group has installed a new senior management team, led by Eduardo Zea, CEO, former Chief Executive of Sears de Mexico. Other new appointments include Luz Maria Gutierrez, who joins Milano as CFO, and Alfredo Manzano, COO-both of whom have significant, relevant experience in their areas of expertise within the Mexican retail segment.
Advent's investment in Milano was made through its Latin American Private Equity Fund III (LAPEF III) and GPE V programs. The firm's Mexico City team, which has deep experience in travel retail, will be able to leverage the broader retail expertise of the GPE team in the US andEurope.
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