Up until 2020, Zara's store count had been on an upward trajectory, peaking at 2,866 stores that year. The pandemic led to a significant decline in numbers. Over the course of four years, the total physical store count, including Zara Home and Zara Kids, fell 22.5% to 2,221 stores as of early 2024.
The company has fared better than many of its rivals by keeping tighter controls on inventory, enabling it to remain nimble in a fickle fashion industry, but its sales-growth rates have headed down sharply from the post-pandemic boom era.
As of now, Zara reportedly was paying about Rs 36 crore a year, which translates to Rs 9.86 lakh a day. This high rental expense is said to be the main reason behind Zara's decision to close the store. Zara's parent firm, Inditex SA, operates in India through a joint venture with the Tata Group's Trent.
Zara also managed to overtake H&M in 2023 and is now only slightly behind Nike. In the nine months to October 2023, Zara's global sales grew 11.4%, attributed to its design credentials and wide appeal. GlobalData's report added the retailer could move into first place in 2024, given this upward trajectory.
Closures are expected to be concentrated in Asia and Europe. It is understood that the 107 Inditex stores in the UK are less likely to be significantly affected. Inditex said that “headcount will remain stable”, with staff offered roles in other jobs such as dispatching online purchases.
This transformation signals that Zara isn't just competing in the world of fast fashion anymore. They are stepping into the realm of premium retail, and the choice of this iconic location is a pivotal part of that strategy.
Generally, Zara's target age distribution is between adults aged 18-40, including both men and women. Zara's target market is largely focused on Millennials and Gen Z, who are both fashion-conscious and tech-savvy.
Inditex reported that from 2023 to 2024 Zara's sales have grown 7.1% and gross profit has increased 7.2% (Inditex, 2024). These results continue to grow year to year as more advanced technology strategies are implemented into various processes within the company.
Social media users have called for a boycott of Zara over its ad campaign that they said referenced the Gaza war. Zara has pulled an advertising campaign that provoked a backlash from people decrying what they said was a resemblance to scenes of death and destruction in Gaza.
In 2024, investigations into Zara's production hubs in Galicia, Spain, and Brazil revealed allegations of worker exploitation, low wages, and poor working conditions. These findings underscore the gap between the company's ethical claims and its operational realities.
Zara manages unsold clothing 1 through discount sales, outlet stores, recycling programs, and donations. The brand avoids waste by repurposing fabrics, selling leftovers at lower prices, and working with charities to distribute excess stock.
Ortega, whose daughter Marta is the company chairwoman, is the largest shareholder with a 59 percent stake through his family office Pontegadea. Ortega has a net worth of about $105.3 billion, making him the 14th wealthiest person in the world as of Tuesday, according to the Bloomberg Billionaires Index.
Over 1200 stores of the large clothing chain "Zara" will be closed worldwide, and this company aims to boost online sales, as a result of the chaos caused by the Covid 19 pandemic, writes The Guardian.
Zara makes a lot of money each year. In 2022, its total sales reached €23.2 billion! This success is due to Zara's ability to sell millions of clothing items every year. The company uses its fast fashion model to keep inventory fresh, which encourages customers to visit often.
Zara is much older than Shein; it was founded in 1975 in Spain by Amancio Ortega and Rosalia Mera. And unlike Shein, Zara had always aimed to be a fast fashion brand. From its inception, it became a hit among consumers by offering low-cost versions of popular and expensive clothing.
Shein accounted for nearly one-fifth of the global fast-fashion market , opens new tab in 2022, outpacing Zara and H&M. Shein's low prices - $5 t-shirts and $10 sweaters - also draw shoppers who might have otherwise shopped at clothing discount stores.
As of 2024, Zara, owned by Inditex, is valued at $27.1 billion, making it the second most valuable fashion brand globally. Uniqlo, owned by Fast Retailing, has a market value of $15.1 billion, ranking sixth among the top fashion brands worldwide.
Among other celebrities known for often wearing Zara is Kate Middleton. The Princess of Wales has worn the brand's blazers, dresses and accessories at various official events, often pairing Zara pieces with designer items.
Middle-class brands provide stylish clothing at prices that balance affordability with good quality. Examples of middle-class brands include Uniqlo, H&M, Gap, and Zara 2, known for accessible pricing and trendy designs.
ZARA's target consumer is often between the ages of 18 and 40, with a medium-high income. Furthermore, it targets customers based on their fashion awareness. They are frequently busy individuals, which is taken into account in ZARA's strategy, which aims to get customers to buy on impulse.
The name is an abbreviation of 'trafaluc', which after extensive research we can safely say is a made-up word. It's marketing speak and nothing more. As Zara is a Spanish brand we spent a good portion of our day looking through dictionaries and on Google Translate but we've come up empty.
In a special collaboration for Zara, the intentionally-celebrated designer Stefano Pilati designs a comprehensive collection of ready-to-wear and accessories. Wardrobes for men and women, they expound and expand his aesthetic signatures, for the first time presented under his own name.
