Pursuits
Zara Owner Cuts Store Expansion Plans in Favor of Online
- Inditex CEO: e-commerce to compensate for adding fewer stores
- Retailer's shares rise as much as 4.2% on cheaper way to grow
Inditex Focuses on Online Growth for Zara Brand
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Inditex SA, the world’s largest clothing retailer, reined in store expansion plans as the Zara owner delves deeper into online shopping as a cheaper way to boost sales growth.
The Spanish retailer aims to increase store space 6 percent to 8 percent in coming years, below a previous target of 8 percent to 10 percent, Inditex said Wednesday. Analysts applauded the shift, since online customers usually spend more, pushing the stock up as much as 4.2 percent.