Zara owner Inditex looks to US for next phase of growth

Inditex, the owner of popular fashion brands Zara and Massimo Dutti, is focusing on the United States as a new growth market, according to CEO Oscar Garcia Maceiras. The company plans to open new stores in Denver, Phoenix, and Pittsburgh, as well as expand its upscale Massimo Dutti and Gen Z-focused Bershka brands to New York. Inditex has been cautious in its US expansion, opening stores after assessing demand through online orders.

The company, which has seen a 27% reduction in store count since its peak in January 2019, now aims to improve the quality and profitability of its remaining stores. Garcia Maceiras revealed that refurbished stores, such as Zara's Oxford Street outlet in London, have positively impacted conversion rates. By the end of 2027, Inditex plans to execute 20 expansion projects in the US, including new stores, expansions, and refurbishments.

The brand's growing appeal to budget-conscious shoppers, potentially displacing luxury brands, is attributed to price increases across the industry. Inditex's competitive stance has also been bolstered by the EU's decision to eliminate duty-free access for e-commerce parcels, prompting Shein to increase prices. Despite holding a minimal global market share, Inditex remains optimistic about its prospects, focusing on its own growth and maintaining a level playing field.