Faced With The Restructuring Of The Global Garment Industry, Last Year, Zara'S Parent Company Broke Its Record In The UK Market.

The world's largest

Retailer

SA (ITX.MC) Indo textile group was in Britain last year.

Achieve record sales, but profitability is dragged down by investment.

Inditex SA, the British subsidiary of Indo Textile Group, achieved a 13% sales growth in the fiscal year ended January 31st, and for the first time exceeded 600 million pounds to 602 million 700 thousand pounds.

Pre tax profits dropped by 32.8% compared to the same period last year, down from 58 million 300 thousand pounds in the previous year to 39 million 200 thousand pounds.

During the year, the group's investment in refurbishing stores and London office headquarters increased its cost by 11%.

The dividend paid by the British branch to the parent company has also been reduced from 47 million to 30 million 500 thousand.

According to the world clothing and shoe net, in the 2016 fiscal year, the Inditex SA India India Textile Group recorded a net sales of 23 billion 300 million euros, with a net profit of 3 billion 200 million euros, and two data grew by more than 10%.

In addition to Zara, Inditex SA Indo Textile Group also operates Bershka, Stradivarius, Pull & Bear, Massimo and Dutti brands in the UK.

Although Zara has entered the UK in the late 90s, its brand share is still not high in the past 20 years.

According to GlobalData's data, the brand ranked only nineteenth of the 20 largest women's clothing retailer in the UK with a market share of 1.5%, while the top of the list is Marks and Spencer Group PLC (MKS.L) Marsha general store, Next PLC (NXT.L) and Primark two or three.

However, the latest research report of Moody s Corp. Moodie believes that with the slow salary growth and inflation repression of British nationals' disposable income, next year, Marks and Spencer Group PLC PLC, Next PLC, New PLC, and other entities retailers will face the challenges of market share contraction and the return of profits in the face of multifaceted competition, while value retailers, international fast fashion brands, and local fashion brands, and other fashion businesses will win.

In the face of challenges and failure, Next PLC has successfully utilized analytical and data improvement business in the past six months, and its outlook is also much more optimistic than the beginning of this year.

The group raised its annual sales and profit targets in September when its interim results were released, but the latest pre tax profit forecast is still 717 million pounds, which is still far below 790 million a year ago.

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