Inditex ‘merges’ Zara and Zara Home

Zara and Zara Home growing closer. The brand that was born as a spin-off of Inditex flagship approaches its operations to the main concept of the Spanish group. At the end of fiscal year 2018, the company chaired by Pablo Isla presents the sales result of both concepts together, at the same time it plans to start selling articles from the home wear chain in Zara.

“Due to the emerging synergies between both concepts,” Inditex decided to group Zara and Zara Home 2018 reports together, according to the Spanish National Securities Market Commission (CNMV) on the occasion of the annual presentation of the results.

“The objective is to maximize the operational impact and the brand management by combining the online and the physical platforms,” explained Inditex. Zara is the largest concept of the group by revenue, while Zara Home is currently one of the fastest growing ones.

In addition to a merger from the accounting point of view, Inditex will progressively integrate the products of both chains. From the next autumn-winter season, the company plans to incorporate Zara Home products on the Zara website in some markets.

With this movement, Inditex follows a growing trend in the fashion business aimed at offering a whole lifestyle to the customers of the brand. This way, now the product supply of companies goes beyond fashion, approaching segments such as home wear.

“The idea that we have for the future is to consider Zara Home as a fourth section of Zara,” explained today Pablo Isla during the presentation of the group’s results. “In the online channel we see many advantages of gradually incorporating Zara Home products on the Zara website; there are many operational synergies,” he added.

Zara Home will be in the future like “a fourth section of Zara,” according to Pablo Isla

“Of course, Zara Home will continue to have its independent stores, but we also have them for Zara children; Zara Home has a sales evolution quite in line with the global evolution of the company, so it comes as a logical step in the development of the chain,” pointed out Isla.

Inditex closed 2018 with a global revenue of 26.14 million euros, 3% more than in the previous year. At constant exchange rates, group sales increased by 7%. The net result stood at 3.44 billion euros, 2% more.