"I would stop paying attention to the number of stores"
The president of Inditex, Pablo Isla, today presented the results of the textile group of 2018. Although the owner of Zara has recorded profits and record sales, the figures show a slight deceleration with respect to forecasts and data from previous years. Isla has blamed the "currency effect" (the devaluation of foreign currencies in some of the markets in which Inditex operates) and has indicated that growth is "solid".
Thus, he recalled that in the last five years sales have increased by 36% and profits have grown by 45%. In addition, he pointed out that there is still potential for growth and has estimated between 4% and 6% increase in sales (in comparable stores) scheduled for 2019. "I would stop paying attention to the number of stores," said Isla , which has opted for a strategy based on larger and more relevant stores, with removals of smaller ones and renovations. In this sense, has set the example of Spain, where the number of stores has decreased but the commercial area remains on the rise. "In Bilbao, the opening of a new larger Zara has meant the absorption of four stores," he explained. In any case, he assured that "no restructuring is contemplated in Spain or anything like that", because "we do not see any different element on the positive sales trend".
Since 2012, the surface of the stores has increased by 39%, reaching up to 50% in the case of Zara. In this way, the size of the group's flagship stores has gone from an average of 1,452 square meters to 2,184 meters. Isla Anucio also that the next March 20 will begin the online sale in Brazil. In May it will also arrive in Dubai, Saudi Arabia, Lebanon and Ukraine. The goal is to be able to sell online worldwide in 2020. In addition, this Friday Zara will open a new store in New York, in the new development of Hudson Yards.
