Inditex plans 20 expansion projects in the US by the end of 2027
Spanish group Inditex, which owns Zara, plans to implement 20 projects in the United States by the end of 2027 involving the opening, expansion and refurbishment of stores for the Zara, Bershka and Massimo Dutti brands. The US market is the company’s second-largest by sales after Spain.
As Asharq Al-Awsat reports, Zara is preparing to open stores in Denver, Phoenix and Pittsburgh. Inditex also plans to open stores in New York for the more premium Massimo Dutti brand and the Generation Z-focused Bershka brand. The company has already launched both brands in Miami.
Selective expansion
Inditex CEO Óscar García Maceiras told Reuters that the company follows a strategy of “selective growth” and seeks to ensure the profitability of every store. The retailer is gradually expanding its network in the United States, first assessing demand in specific cities through online orders.
After the pandemic, Inditex increased sales while reducing its total number of stores and focusing on larger flagship locations. Compared with January 2019, the company’s network has become smaller by around 2,000 stores. The number of outlets declined by 27% from its peak level, while total retail space decreased by only 7%.
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Betting on large stores
According to Maceiras, store refurbishments improve conversion rates — the share of visitors who make a purchase. In particular, the Zara store on Oxford Street in London reopened in June after a five-month renovation.
Inditex’s market value, estimated in the article at €170 billion, recently exceeded the market capitalization of luxury group Hermès. The Inditex chief also noted that some shoppers combine products from different price segments in their wardrobes and may forgo certain purchases in the luxury segment in favor of Zara or Massimo Dutti.
The company is also developing its budget brand Lefties, which is often seen as a competitor to Shein. Maceiras said that the European Union’s decision to end the duty-free regime for e-commerce parcels creates a more level playing field for market participants.
