Market Prospect And Space Of ZARA

Zara plans to open 15 stores in New York this year, and to open more than a dozen stores in other US cities.

For Zara, the United States is still a market to be excavated.

In January 7th,

The parent company of Spain Inditex group announced the purchase of an old building built in nineteenth Century in Manhattan, New York, for $280 million, with a total area of 47 thousand square meters in nineteenth Century.

The building will be used to open a new Zara flagship store by the end of this year.

"The opening of new stores will be a milestone for the group in the US market strategy."

Pablo Isla, chief operating officer of Inditex group, said in an interview with women's Wear Daily that "a large part of Inditex's strategy in the US market now is to open up a series of real flagship stores. This acquisition of the building is an important step."

In addition, the group plans to open a 30 thousand square meter Zara flagship store in Broadway near the world trade center.

At the same time, its flagship store on Fifth Avenue will reopen after renovation this year, with an area of 43 thousand square meters.

In 2015, Zara will still adopt a positive store strategy in the US. It plans to open 8 new stores in Manhattan, New York, and open 7 stores in other parts of New York.

As for other parts of the United States, Zara will also open more than a dozen flagship stores in cities like Losangeles, Las Vegas and Boston.

Compared with China, Russia and Japan, Zara does not have many stores in the United States.

According to the Zara2013 financial year's earnings report, there are only 45 stores in the United States, far less than 152 in China, 77 in Russia, and 90 in Japan.

Therefore, for Zara, the United States is still a great space for development.

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Although there are many emerging markets for fashion sales all over the world, the mature American market is still one of the most important battlegrounds for fashion brands.

In September 2014, UNIQLO announced plans to put more resources into the expansion of the US market in the future. At present, UNIQLO has only 26 stores in the United States, but by 2020, it will reach the target of 200 stores.

In the Soho area where the new building is located, Zara already has a store, but there are only two floors in the store. The shopping crowds on weekdays are not ideal.

Soho district is located in the lower city of Manhattan. It used to be an industrial area in New York. Now it is the center of New York creative company. The first flagship store in America is also located here.

Of course, besides buying a shop, Inditex can buy a new building as a good real estate investment.

The latest report of Cushman &Wakefield, an American real estate consultancy, shows that in the second quarter of 2014, the rental price in the lower part of Manhattan has risen by 37.8% over the previous year, much faster than that in other parts of Manhattan.

The housing vacancy rate in Manhattan's lower urban area also dropped from 9.1% in 2013 to 6.4%.

"Lower Manhattan is reborn," vice president of Cushman &Wakefield.

In an interview, "now many places can't rent a house, and the rent is growing rapidly."

It is also worth noting that visitor visits in the lower reaches of Manhattan are also increasing.

According to data from Downtown Alliance, a business development company, compared to 2002 of 4 million, visitor visits reached 14 million in 2014.

Of course, this purchase is not the first time that Inditex has opened up a flagship store to purchase real estate.

As early as in 2011, Inditex bought a commercial real estate at Fifth Avenue on the price of 324 million US dollars. In 2011,