In Trends

Zara Home merges with Zara brand

Inditex Group confirmed that it plans to progressively merge its Zara Home category into Zara during 2019, motivated by the brands’ “increasing synergies.”

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Following a stellar full-year 2018 results, the Spanish company’s chairman Pablo Isla made the announcement during its earnings presentation on Wednesday, March 13.

“The long-term goal is to consider Zara Home as a fourth section of Zara,” said Isla, after submitting the company’s annual results with the Spanish National Securities Market Commission (CNMV).

Under the change, Zara Home will continue to operate online, in addition to its 603-standalone stores (524 directly operated and 79 franchises).

However, a selection of Zara Home – dedicated to homeware and home décor products – will also roll out across selected Zara stores as part of a new section. These include Zara ‘Woman’, ‘Man’, ‘TRF’, and ‘Kids’.

“The goal is to leverage operational and brand management of the store and online platform in a combined manner,” the group said.

The synergy plan has already taken place at the brand’s stores in London, St. Petersburg and Alberto Aguilera, Madrid.

Zara Home products will also be set up on the Zara website in select markets starting from next Autumn/Winter. The move will be a first for some nations, essentially testing the water for its home products – as part of its plans for 2020.

“In line with the global evolution of the company, it is a logical step in the life of the chain,” said Pablo.

Founded in 2003, Zara Home is dedicated to the brand’s homeware and loungewear products.

In its earnings report last week, Inditex said 2018 net profit rose 2% to €3.44 billion, while net sales grew to €26.14 billion, up by 3% on the previous year.

This year was the first year both Zara and Zara Home were grouped together for reporting purposes.

SEE ALSO : Zara experiments AR in its stores

The duo generated €18 billion in net sales, up from €17.44 billion a year earlier. Individually, in 2017, Zara reported net sales of €16.6 billion, while Zara Home made €830 billion.

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