“Latin America is still an area of opportunity, because U.S. retailers don’t yet have a major reach there,” said Luis Llaca, a CBRE vice president for Latin America. “All is growth, retailwise, with good numbers. In this scenario, a U.S. retailer prefers 15 openings in Latin America [rather] than in a saturated market like the U.S.” U.S. chains peddling affordable merchandise perform particularly well in Latin America because they address a market need, Llaca asserts.

Though Forever 21 filed for bankruptcy in September and announced plans to close as many as 350 stores, including exits from most Asian and European markets, the fast-fashion retailer has plans to keep operating in Latin America. The company has about 40 stores in Brazil and 35 in Mexico. Gap Inc. says it intends to shut down about 230 stores over the next two years but also has plans to open 45 franchised Banana Republic, Gap and Old Navy stores across Central America and the Caribbean through 2027.

“There has not been the rush to overbuild shopping centers and malls, and thus the number of retail locations and square feet per capita is lower than in other areas of the world,” said Andy Carlson, JLL’s Caribbean and Latin America retail head. “Retail development has also been checked due to regional and local lending practices. Access to easy capital is not something [that is] experienced in most of Latin America.” Retail real estate also concentrates on the region’s metro areas, which boast high-density populations and access to public transportation, all of which are good for retail sales, he notes.

E-commerce in Latin America is growing at healthy rates but accounts for just 1.9 percent of the projected retail sales for this year, according to data firm Statista, so it is hardly a threat to brick-and-mortar. “Physical stores still have growth potential in Latin America because the penetration of e-commerce has yet to reach its peak,” said Gerardo Rocha, a partner at A.T. Kearney Mexico. “Second players are still inexistent in many retail niches. Plus, consumers favor foreign brands, and retail sales continue to be an economic engine in most countries.”

These favorable dynamics have led Payless to continue in Latin America and to plan on opening 20 stores in the region this year. The shoe retailer closed its 2,500 stores in Canada, Puerto Rico and the U.S. but boasts roughly 400 stores with annual sales of $350 million throughout Latin America and the Caribbean. It also has franchise stores in certain Asian, Middle Eastern and North African markets. “Our business model works very well in the region, particularly in Central America and the Caribbean, while posting good growth rates in our South American markets,” said Justo Fuentes, the company’s Latin America CEO. Fuentes cites population growth and a sizable and expanding middle class that generates a consumer base looking for reasonably priced, high-quality footwear.

“The cost of doing business in Latin America, including rents and payroll, is also propitious for developing a profitable retail industry,” Fuentes said. Payless is anticipating the addition of at least two markets by 2024, having evaluated its entry in Bolivia, Chile and Mexico. The company also has tentative plans to re-enter Puerto Rico before the end of this year.

RadioShack, meanwhile, is alive and well in Central America and Mexico. El Salvador’s Unicomer Group bought the RadioShack naming rights for Central America, and Mexico City–based Grupo Gigante did the same for Mexico. “As their former business partner in our market, we saw a business opportunity when they decided to shut down four years ago,” said Carlos Rafael Álvarez, Grupo Gigante’s general director for RadioShack’s 200 stores in Mexico. “When you ask local consumers about electronics chains, RadioShack is the top-of-mind brand. We have the same business model, with unchanged packaging and quality.”