Zara owner Inditex looks to US for next phase of growth

Fast fashion company Inditex, which owns the Zara brand, is looking to the United States as the next significant growth market, according to CEO Oscar Garcia Maceiras. The retailer has opened new Zara stores in Denver, Phoenix, and Pittsburgh, and plans to introduce its upscale Massimo Dutti and Gen Z-focused Bershka brands to New York, following successful launches in Miami.

Inditex, the second-largest fashion company by sales after Spain, has been cautious in its expansion, prioritizing profitable stores and gradually gauging demand in each city through online orders. Despite reducing its global store count by 27% since 2019, the company has been able to improve the quality of prime locations, leading to better conversion rates in refurbished stores like Zara's Oxford Street outlet in London.

Inditex aims to make 20 expansion projects in the US by the end of 2027, including new stores, expansions, and refurbishments across its Zara, Bershka, and Massimo Dutti brands. The company's market value has recently exceeded that of luxury group Hermes, reflecting investor confidence in Inditex's growth prospects in the fast fashion sector.