Inditex to focus on India and China to drive future growth
25 March 2011 09:53
Zara owner Inditex is to target aggressive expansion in emerging markets including China and India to drive future growth. The announcement accompanied a trading statement which revealed an annual profit bump of 32% to Eu1.73 billion in the year to the end of January.
The Spanish group, which operates 55,000 stores in 77 countries, posted full-year sales growth of 13% to Eu12.53 billion although much of this was driven by 437 new stores in 45 countries.
Inditex is looking to open a further 77 stores in China in 2011, together with new sites in Mumbai and Delhi. It will also open its first stores in South Africa and Australia. In total, the group is planning to add around 500 outlets this year, with at least half of the Zara stores it opens in Asia.
Like-for-like sales rose by 3% for the year after being flat in 2009, while gross sales margin improved by 220 basis points to 59.3%.
The group will launch online shopping for its Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Uterque brands during the autumn/winter season. Zara online is currently available in 16 countries and Inditex plans to expand coverage to the US and Japan.
The retailer is to pay a dividend of Eu1.60 per share, a 33% increase on last year.
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