Mexico accounts for 65% of the openings of ‘Zara’ in Latin America in 2015 – Economíahoy.mx

Africa Semprun (Mexico City) – 16:59 – 03/10/2016

• Inditex opened 34 shops in the Aztec country in a year and consolidated as its first market of America and the world’s fifth

• in Brazil, Chile, Colombia, Panama, El Salvador, Guatemala and Puerto Rico opened 11 stores during the past year

• the region accounts for 14.9% of group revenues which billed 20,900 million euros in its fiscal year

Inditex has put Mexico at the epicenter of its expansion plan for America. The owner of Zara, Bershka or Oysho has concentrated efforts on growing at double digit rates in the Aztec country to the detriment of other countries in Latin America, where it has just gained weight in recent years. Thus, besides implementing policies to encourage sales, as adjusted 15% the prices to be more competitive in a market in which Carlos Slim has redoubled its efforts to grow Philosophy and Sears, Inditex has accelerated store openings in the Aztec country.

Only in 2015, the multinational fashion opened 34 stores in Mexico to add 338 shops, consolidating the country as its first American market, well ahead of the United States, which he has 71 local, and fifth globally, following in the footsteps of Italy, where it operates 355 stores.

The pace of openings registered in Mexico is much higher than developed by the company throughout the region, which has hardly increased in size in recent years. Thus the Aztec country in 2015 captured 65% of the openings Inditex held in Latin America, where he opened a total of 52 locations. Other openings (18) were distributed among Brazil (7), Chile (2) Colombia (5), Puerto Rico (1), El Salvador (1) Guatemala (2). Mexico also adds more stores than the United States, where the famous chain opened 16 stores last year, and Canada, which did not make new openings, and achieves the second place as a country in which most premises have been built in 2015, behind China, which added 60 stores to reach 566.

the trend in 2015 follows in the footsteps of 2014, when Inditex had 32 stores in Mexico. In total, this year the multinational Amancio Ortega opened 52 stores in Latin America, which means that more than half of the openings were made in Mexico, where there are 49.5% of the stores that Inditex operates throughout the Americas, including the United States and Canada. After the commitment to Mexico the rise in domestic consumption, which in February 2016 grew by 9.6%, clawing growth historic 9.8% in October of the year is past despite the volatility and rising prices for the depreciation of the peso against the dollar, a situation which increases the exported products.

By store type, department increased its sales by 9.75% in nominal terms and specialized, 8.2%. By line of goods, clothing and footwear were led hikes February with a 10.7% improvement on sales. Over the last year comparable sales in Mexican stores recorded monthly increases above 4.9%, while in countries like Brazil, Argentina or Venezuela, hardest hit by the crisis of raw materials and political uncertainty, domestic consumption has fallen. In this sense, Inditex takes at least two years without opening stores in Argentina or Venezuela which operates 10 local and 25 respectively. Nor it has added establishments in Uruguay, or the Dominican Republic.

Inditex, which already totals 7,013 stores worldwide, has beaten its own record revenue thanks to increased sales online and offline. Thus, the Galician giant achieved sales in the last fiscal year, ended Jan. 31, 20,900 million euros (about 401.400 million pesos), representing 15.4% increase over the previous year. 14.7% of the revenue generated by the fashion leader come from America, which has gained weight within the company over last year when it brought in 13.9% of turnover. For against, Europe and Spain have contributed less to the overall turnover of the group has won 2.875 million euros, 14.9% more.

Inditex continues global expansion of its model integrated stores and online shops with a focus on Asia, Africa and America, a region that sees “markets with attractive growth, strong growth opportunities and capacity full integration of online sales platforms and physical, “the company said in a presentation to investors.

In Mexico, Inditex operates 71 stores of the Zara chain, 58 of the brand Pull & amp; Bear, 36 of Massimo Dutti, 62 Bershka, 32 of Stradivarius, 44 Oysho, 21 Zara home and 11 Uterqüe.

Other news

sponsored Content