Zara to rely on online
11.03.2016 429 views
In 2015, Inditex clothing seller showed the slowest growth rate in the history of the group's presence in Russia
By the beginning of 2016 the Group had had 485 stores in Russia, and 30 more (+ 6%) were opened in the past financial year. Zara Home chain has grown most notably to reach 38 stores. Most slowly grew the number of Bershka, Pull & Bear and Stradivarius new stores.
Net sales in the fiscal year amounted to EUR20.9 billion, while net profit rose by 15% to EUR2.9 billion.
Now the owner of Zara is going to revise its approach to work offline. The company will continue to expand, but at a lower cost, said Inditex CEO Pablo Isla.
According to him, Inditex does not change their strategy of growth, but it will focus on the quality of new stores. The Group believes in the integration of physical and online stores, stressed Isla.
«Inditex made the right choice, deciding to slow down the growth of retail space. Inditex is definitely in a position to increase its market share through a less costly online channel," - Reuters quotes Sanford C. Bernstein analyst Jamie Merriman.