The giants of the sector have reconsidered their models this last year due to an environment of transformation characterised by the fall of profitability and the deceleration of fashion consumption.
The second biggest fashion retailer in Spain appointed Toni Ruiz as general manager. The executive will be in charge of correcting the group’s evolution resorting to the online business.
The fashion company predicts to achieve this figure both by opening directly operated stores as through huge franchises and, parallelly, it will close small sized ones.
The company specialised in clothes and sports has announced several acquisition projects which it expects to close during the first quarter of the next year.
The Spanish giant shaped its size all through last fiscal year, first with the announcement of its network of stores and then with its jump online.
In the fourth quarter, the group gained impulse with 12% rise of sales, reaching 56.42 billion Swedish kronor (5.5 billion euros), its best quarter in three years.
The group has released Zalando Privé in the country, its platform for stocks sale exhibition. The offers last from three to five days and among the brands included are Adidas and Pepe Jeans.
Nowadays, about 20% of fashion purchases are done through the Internet, according to the research Dressed for Digital: The Next Evolution In Fashion Marketing carried out by consultant Boston Consulting Group (BCG) and Zalando Marketing Services (ZMS).
The Spanish fashion group’s gross margin surpassed for the first time the 60% since 2015. “We have answered to a volatile and challenging background without discounts”, explained Pablo Isla.
Moodys rating for the Spanish bridalwear giant stands at B3, that is with “high credit risk”, and a stable outlook. In the past year, the company has changed hands and hired a new managing team.
The group ends the first nine months of the fiscal year (comprehended between February and October) with a volume of business of 18.43 billion euros, up by 3%.
Pablo Isla announced last September his plans to sell online all around the world by 2020. The first step was the release of an online platform with which it reached 106 new markets in November.
Even though in base to October 2017, almost all chains shrunk their network of stores, during the third quarter (the one that comprehends the majority of openings) Inditex added twenty new stores up.
The company’s top chain, Zara, has opened up five new stores in the North American market during the first nine months of the fiscal year in Denver, New York, Portland, New Orleans and California.
All economic news of the key fashion companies worldwide.
