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Inditex’s Growth Strategy in Greece
Inditex is expanding its operations in Greece, showcasing impressive performance metrics for its subsidiary, ITX Hellas, over the past year. The company’s portfolio includes renowned brands such as Zara, Zara Home, Massimo Dutti, Pull & Bear, Stradivarius, Oysho, Bershka, and Uterque, all of which have reported strong results once again.
For the fiscal year ending January 31, 2024, ITX Hellas experienced a revenue increase of approximately 18%, reaching €725.4 million compared to €614.8 million in the previous year. EBITDA rose by 34.5%, amounting to €101.6 million, up from €75.59 million, while pre-tax profits surged to €49.6 million, marking an impressive 81% increase from the previous fiscal year. Similarly, net profits exhibited a growth rate of 80%, totaling €37.8 million.
Financial Overview and Investments
The company’s total liabilities stood at €190.9 million, compared to €169.8 million for the fiscal year ending January 31, 2023, with short-term obligations accounting for €113.1 million. In 2023, the company invested €16.8 million in both leased and owned retail spaces. Additionally, ITX Hellas revamped its online sales distribution model by establishing warehouses with larger inventories, which effectively reduced delivery times from 4-7 days to just 1-3 days.
Online sales now represent 15% of the group’s revenue in the Greek market, a significant increase from 8% prior to the pandemic. The workforce has expanded to 4,100 employees, and as Inditex Hellas’s general manager, Ilia Malamas, has noted, the company is not facing the same recruitment challenges that are prevalent in the retail sector. “We find staff easily because we’ve invested a lot in our employees over the years,” he stated.
Employee Welfare and Wage Increases
In January, ITX Hellas implemented an across-the-board salary increase of 11% for all employees, raising the minimum wage to €1,050 gross from €930.
Expansion Plans and New Store Models
Currently, the Spanish group operates a network of 155 stores in Greece, employing 4,100 individuals, and the country ranks among the markets with the highest performance metrics. The centerpiece of their growth strategy is the new store model for Zara, with the flagship store located in the Piraeus Tower serving as a key milestone for future plans.
According to management statements, the new strategy focuses on larger retail spaces capable of accommodating an expanded product range. The next major opening is set for Thessaloniki, with a new 3,200 square meter store expected to launch this fall on Tsimiski Street. The opening of the Minion store is anticipated in early 2025, and the group has secured additional locations in Elliniko.
A Milestone Year for Zara in Greece
It is noteworthy that this year marks Zara’s 30th anniversary in Greece. The first store was established at 9 Ermou Street, at the intersection with Voulis Street, where it remains operational to this day.
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