Zara Ireland, a subsidiary of the renowned Spanish fashion company Inditex, is determined to continue expanding its operations in the country despite the significant challenges posed by the pandemic. The company has expressed its plans to open new stores whenever suitable opportunities arise, as it anticipates a boost in profitability due to the ongoing increase in sales.

Recent financial accounts reveal that Zara Ireland experienced a loss of €893,000 in its last fiscal year, compared to a profit of €4.5 million in the previous year. This decline can be attributed to the impact of the pandemic, which led to a 16% decrease in Zara’s sales, amounting to €91.3 million over the course of 12 months ending in January.

The directors of Zara Ireland have acknowledged that the mandated store closures, capacity limitations, and travel restrictions had a negative impact on the company’s earnings and profitability. However, they have emphasized that this decline was partially offset by an increase in online sales and prudent cost management decisions.

Although Zara Ireland did not open any new stores during the financial year, it took advantage of the crisis to renovate its outlet at the Pavilions shopping centre in Swords, north Dublin. The purpose of this refurbishment was to align the store’s layout and ambiance with the distinctive Zara brand image.

Despite the challenges faced by the retail industry throughout the pandemic, Inditex has reported that its sales in recent weeks have surpassed those of the same period last year by 33%, and have even exceeded pre-pandemic levels seen in 2019.

The success of Zara in Ireland can be attributed to its adaptability to changing consumer behaviors, especially the increasing trend of online shopping. Moreover, the company’s emphasis on responsible cost management has played a significant role in mitigating the impact of the pandemic on its operations.

As the world gradually recovers from the effects of the pandemic, Zara Ireland maintains an optimistic outlook on its future prospects. The company is actively seeking new opportunities to expand its presence in the Irish market, and its primary objective is to regain profitability through sustained growth in sales.

Useful Links:
1. Zara Ireland website
2. Inditex corporate website