H&M is traversing Mexico in search for possible store locations following the opening of its 50,000-square-foot store in Guadalajara this month.

Despite H&M insisting that they have yet to settle on a store location, members of the Mexican press are speculating that its next store could be in San Luis Potosí in central Mexico or the Cancun beach resort.

The Swedish fashion retailer is currently readying for the inauguration of its third Mexican store – a 27,600-square-foot in Querétaro – and is keen to make Mexico its Latin American launch pad.

“We are considering several locations, but key cities like Cancún, Monterrey, San Luis, Veracruz, Leon or Villahermosa are not out of the question,” a company spokesman said.

Latin America, and in particular Mexico, is growing to become a lucrative fashion destination and retailers are fighting for coveted retail space. The Antea mall – the location of H&M’s Querétaro store – has seen Gap and Spanish fashion chain Sfera set up shops there recently.

According to a CNNxpansión article quoting CEO Karl-Johan Persson, H&M has made a reported USD 12 million in the first quarter. Persson also revealed that expansion in Brazil, Peru and Colombia could be on the cards.

The H&M spokesman also hinted towards a Mexican designer-inspired clothing line in the coming months, despite remaining coy on the details.

“We don’t discard a collaboration with a Mexican designer, but right now we are mostly focused on our new openings,” he said.