closed, on and off, for much of the past year. Now signs on the blacked-out windows of the Zara shop on the Champs-Elysées, the Spanish brand’s early outpost in the French capital, announce it will not re-open even after covid-19 passes. Disappointed fashionistas are redirected to the label’s website for all their value-for-money sartorial needs. Alternatively, they can stroll two blocks down the avenue, where another Zara shop opened a few years ago.
Much of what it takes to flog a polka-dot dress for $27—the average selling price for the Inditex family of brands, which also includes thriftier Bershka and posher Massimo Dutti, among others—is the same in store or online. The product must be desirable, and available at the right time, right size and right price. For the bean-counters, though, the transactions are as different as sequins and flannel.
Inditex’s signal that it is reducing its store numbers is a wake-up call in the industry. Bosses dislike shutting shops. Attendant lay-offs irk politicians; write-downs and forgone sales can annoy investors. But where Inditex goes, others follow. The Spanish group has grown faster than rivals, such as Sweden’sor America’s Gap. It surged ahead by outsourcing more of its production close to its main European market, which allowed it to respond faster to fashion trends and maintain leaner stock.
And how much to ensure there are not slaves in its supply chain? Environmental disasters?
A creative business answer! Zara, Congratulations!
wish this read: Zara's owner plans investment of $3bn by 2022 to transition to sustainable operations and ensure climate & worker health
nice