Zara recorded sales of Rs 405 crores
As per a report in Economic Times, Zara recorded sales of Rs 405 crores last year across 9 stores. Inditex Trent, the joint venture between Inditex (the brand owner of Zara) and Trent, a Tata company, recorded 56% growth in sales without any new store addition in the year ended March 2013. At an average therefore each of its stores clocked Rs 45 crores in the year or Rs 12.3 lakhs a day. In fact if media grapevine reports are to be believed, at the Select City Walk store it is reported to be doing Rs 7 crores a month. This amounts to an average of Rs 23 lakhs a day – from a 16,500 sq. ft. store. And this has been achieved in a slow, sluggish market where most retailers are struggling for a single digit like-to-like growth. The original anchor tenant at Select City Walk, Pantaloons, spread over 25,000 sq. ft., is said to be generating average monthly sales of Rs 4 crore. What’s more, Zara is also known to keep real estate costs in control. It negotiates revenue share deals and demands fit-outs and floorings.
Given the warm reception to the brand, the company is said to be preparing to move to smaller cities such as Mangalore, Surat and Indore. The company recently opened the Zara store at Elante mall in Chandigarh.
In 2010 -11 and 2011-12, the company had reported profits of Rs 38.3 crore and Rs 22.5 crore respectively. In 2012-13 profits were hit by a loss of Rs 10.08 crore on its store at Phoenix Mall at Kurla – which had to be completely re-done on account of water leakage in the store.