Key facts
- Inditex is investing in the U.S. as a key growth market, according to CEO Oscar Garcia Maceiras.
- New Zara stores are planned for Denver, Phoenix, and Pittsburgh.
- The Massimo Dutti and Bershka brands will launch in New York.
- Inditex's U.S. market share is around 2%.
- Inditex has reduced its global store count by 27% since January 2019, while total selling space is down only 7%.
Inditex, the Spanish fast fashion conglomerate behind Zara, is focusing on expanding its presence in the United States, viewing it as a crucial market for future growth. CEO Oscar Garcia Maceiras stated that the company is pursuing "selective growth" in the U.S., its second-largest market after Spain, by opening new stores and revamping existing ones to attract more aspirational shoppers.
New Zara stores are slated for Denver, Phoenix, and Pittsburgh, while the upscale Massimo Dutti and Gen Z-focused Bershka brands will be introduced to New York. This expansion follows a strategy of gauging demand through online orders before physical store openings. Inditex has significantly transformed its retail footprint since the pandemic, reducing its global store count by 27% from its peak while maintaining nearly the same total selling space, indicating a shift towards larger, prime locations.
Edward Kevis, a fund manager at Aviva Investors and an Inditex shareholder, noted that this strategy has improved the quality of selling locations and attracted more footfall. Refurbished stores, like the recently renovated Zara outlet on London's Oxford Street, have shown a "significant improvement" in conversion rates, according to Garcia Maceiras.
By the end of 2027, Inditex aims to complete 20 expansion projects in the U.S. across its Zara, Bershka, and Massimo Dutti brands. The company also recently expanded in Brazil and South Korea and has ongoing projects in Europe, which currently accounts for 67% of its total sales.
Inditex's market value has recently surpassed that of luxury group Hermès, partly due to investor concerns about the luxury sector's growth prospects. Garcia Maceiras suggested that middle-income consumers, potentially "trading down" from luxury brands due to price increases, may be increasingly drawn to Inditex's offerings. He also commented on the European Union's decision to end duty-free e-commerce parcels, stating that while it creates a "level playing field," Inditex remains focused on its own business with its approximately 2% global market share.