Zara’s Oxford Street store in London
(Picture: Getty Images)The company behind the fast fashion chain Zara reported a rise in sales and profits for much of 2023 after selective price rises made in the autumn did not seem to deter shoppers.
Inditex, the world’s largest clothing retailer, said sales in the nine months to the end of October rose almost a fifth to just over €23 billion (£20 billion) with profits also up by a fifth to €6.5 billion.
And the higher prices don’t seem to be hurting sales in the peak festive shopping season. Between the start of November and over the first week in December, they are up 12% year-on-year. That came after an average price rise of around 5%.
The Spanish company said its operating expenses in the nine-month period rose 17%, below sales growth.
Its chief executive, Oscar Garcia Maceiras, said the business faced a “challenging context” but added: “these results clearly reflect the strength of our business model: fashionable collections, an appealing shopping experience and a highly committed team”.
With the high street braced all year for the impact of the cost of living crisis, the resilient sales performance comes as another hopeful sign that retailers are coping with the downturn.
Zara’s boutiques are a feature of London’s shopping scene from Regent Street and Oxford Street in the West End to Westfield Stratford City via One New Change in the square mile. The chain is known for its quick turnaround times for its seasonal ranges, and is popular will Millenials and GenZ shoppers.
