Focusing on international markets to fuel growth
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Spanish fashion retailer Inditex SA (Madrid) reports its sales grew 7 percent for the fourth quarter, and profits increased 17 percent. Showing a strong start to the year, the company's same-store sales in local currencies grew 14 percent from February 1 to March 14.
Inditex, which owns the Zara, Pull & Bear and Massimo Dutti chains, says sales outside its home market of Spain accounted for 68 percent of total sales in 2009, compared to 66 percent in 2008. European sales (minus Spain) accounted for 46 percent of sales, while Asian sales accounted for 12 percent
During 2009, the company opened 343 stores and plans to open 365 to 425 new stores in 2010, with the majority of locations in international markets. "Our priority is to focus growth in Europe and Asia," says Pablo Isla, ceo of Inditex. "We see significant opportunities in Eastern Europe [and] the Russian Federation, and there is a great potential to expand profitably in Europe for many years, as our market share is below 1 percent in most countries."
The retailer recently announced its planning to open 20 to 25 Zara stores in India over the next three years. The company is working with local partner, the Tata Group, to open the first few stores in Delhi and Mumbai in May, before moving to other cities.
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