Zara's parent company, Inditex, reported a significant increase in store sales in 2022, despite closing 10% of its stores and shrinking its commercial space by 6%.
Increase in foot traffic contributed to the jump in sales, with sales per square meter now 16 per cent higher than in 2019. Zara, in particular, had a "remarkably strong year," with net sales increasing by 21 per cent compared to the year before.
To continue this growth, Inditex plans to invest 1.6 billion euros in expanding its stores and warehouses, including opening 10 new Zara stores in the US over the next two years and refurbishing or expanding 13 existing locations.
US is a key market for Inditex and has potential to provide a "significant" boost to the retailer's business long-term. Despite the long lines and overcrowded stores that Zara has become known for in the US, customers have continued to flock to the brand.
Inditex is planning to do away with hard security tags and introduce RFID chips sewn into garments to reduce checkout times by 50 per cent.
