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Continuous and profitable expansion is one of the pillars of our strategy. In 2013, the growth plan was executed according to what had been predetermined. We added a 5.1% of commercial space in four new department stores, an additional 16.9% of leasing space in three new shopping malls and 23 more boutiques with different brands.

In the same token, in 2013, consumer credit continued its growing trend, amounting 3.5 million cardholders for a loan book that totaled $28,181 million pesos and reached an annual growth of a 17.7%.

Our main concern is focused on our customer. We have adapted our operations to deliver a better shopping experience through closer facilities which offer a broad assortment of merchandise and brands targeted to satisfy its needs. Additionally, online-shopping has become increasingly important in our customers preference. Therefore, we invested in improving our merchandise assortment, our delivery time and the search engine of our e-commerce website.

 

Efficiency is yet another of our strategic pillars; therefore Management has promoted and maintained a low cost and expense structure. The competitive environment intensified in the fiscal year. Despite such fact, gross margin maintained practically at the same levels than those of the previous year. As a result of the expansion plan that brought about the opening of 12 stores in the past 15 months, operating expenses grew by 15.8% compared to those of 2012.

Human capital development anticipates to our growth needs. Inasmuch, we foster training plans, talent retention, and promotion to all key positions in our organization in order to keep the steady growth pace that enables Liverpool to be as a continuous, avant-garde and adaptive corporation.

Sincerely,