Inditex Posts Strong Growth in Sales

Inditex, the largest clothing retailer in the world, posted strong growth in sales for its first five weeks of its new financial year. The retailer added that its pace of new store openings would be slowing down as part of the company’s trend of sales moving more to the Internet.

Inditex is going to focus its store openings on its flagship sites located in prime locations such as the Zara three-floor store opened in Manhattan in a building from the 19th century in the SoHo district earlier this month.

It is aiming for 6% to 8% growth in news sales space during the coming years, below its previous 8% to 10% guidance, said CEO and Chairman Pablo Isla.

Inditex, who group of different brands also houses Bershka the teen chain and Massimo Dutti an upmarket label, did not make a separation of its sales online from its total sales figures because they called them complementary.

Customers often times brought items in that were purchased online to change them at brick and mortar locations.

Isla added that the average spent online per customer was more than in their physical locations.

Analysts were pleased with the slowdown in store openings and satisfied that Inditex could grow its market share with a business model that was amended. Shares at the retailer responded in kind with an increase of 2.5%.

The retailer based in Spain opened 330 new stores across 56 markets during 2015, with a new Zara store in Hawaii becoming the 7,000 the store in the worldwide chain.

It expanded its online sales into Taiwan, Hong Kong, Australia and Macao during the year.

Sales of its items like floral dresses, broderie anglaise blouses as well as metallic espadrilles from the Zara’s fashion label spring collection helped to push up sales across the brand of Inditex by 15%, at constant exchange rates.

Its rival H&M experienced an increase of only 7% during the same period.

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