Pain in Spain
27/10/2008
Retail sales in Spain have fallen by around 6% in recent months and the textile industry has lost 70,000 jobs since last year, but Zara’s parent company, Inditex, is in a good position to keep growing, according to Reuters, thanks to its lack of debt, tight control of its supply chain and geographical diversification.
The company is already Europe’s biggest clothing retailer, outselling Sweden’s H&M and a contender for the top slot globally in apparel and accessories with companies such as Gap. Reuters quoted an analyst at Societé Générale, Anne Critchlow, as saying: “We’ve got a slower market, but these companies are by far and away the best placed to deal with that. It doesn’t really endanger their growth plans.”
Share this story:
