Zara has had stores in Tokyo since 1998, when it set up in the district of Shibuya. After this first location, the chain extended its presence to other significant shopping areas in the city and to other cities in Japan. The district of Ginza, located in the centre of the Japanese capital, houses a dense commercial area, which is considered to be the most important in Tokyo and one of the most outstanding shopping areas in the world. Close to some of the most important nodes of communication in the Tokyo conurbation, and to its political, administrative and business centre, this was the place chosen for the opening in April 2003 of the fifth Zara shop in the Asian metropolis.

Japan is the country in the Asia-Pacific region with the largest number of Inditex stores and is, together with China and Korea, the strategic priority for the growth of the Group in Asia. The Japanese market is an excellent commercial location, as well as a valuable scenario for the observation of new trends, both as regards fashion and the evolution of the retail distribution sector. Inditex has carried out six openings in Japan so far this year, reaching a total of 35 outlets in the country, and expects to finish this year with some forty stores in this market. Apart from the opening in Ginza-Marronnier, in the last few weeks the inauguration of another new Zara store in one of the best locations in the district of Shinjuku, Tokyo, has taken place. The store occupies an entire newly-constructed building. The exterior visual impact achieved by this building converts the Zara store into an aesthetic reference point in the area.

Inditex, one of the world’s largest fashion distributors, has stores in 70 countries in Europe, the Americas, Asia and Africa. In addition to Zara, the largest of its retail chains, Inditex has another seven concepts: Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.

The sales of the Inditex Group in the first half –from 1st February to 31st July 2008- increased by 14% in local currencies and constant perimeter with regard to the same period in 2007, achieving the figure of 4,561 million euros. The net profit rose to 406 million euros, which is an increase of 7%. The most relevant figures are:

(millons of euros)	1H 2008	Accounting variation 08/07	Adjusted variation* 08/07
Sales	4,561	11%	14%
Gross Margin Gross Margin on sales	2,574 56.4%	12%	12%
EBITDA	822	5%	7%
EBIT	547	1%	3%
Net profit	406	3%	7%
EPS (euro cents)	65	3%	7%

* Local currencies and constant perimeter.

	1H 2008	1H 2007
Net openings	249	205
No. of stores at the end of the period	3.940	3.336

International Presence

The Group has continued to increase its international presence, with special attention to the Asian and Eastern European markets, where a third of the new openings have taken place. As a consequence, international sales now represent 65.2% of the total, in comparison with 62.2% in the same period of the previous financial year. 

With regard to distribution by geographical area, Western Europe accentuated its position as the region with the greatest contribution to Group operations, representing 37.5% of the total sales, very much ahead of Spain. 

Importance of the Asia-Eastern Europe area

In this regard, the increase in the contribution of sales of stores located in the Asian and Eastern European markets, where sales were 16.9% of the total, in comparison with 14.3% a year earlier and 11% two years ago, is also important.  Particularly outstanding in this strategy of growth are such countries as Russia and China, where sales have increased by 64% in total over the last year.

On 31st July 2008, Inditex had 3,940 stores in 70 countries, with the opening of 249 new stores during the first half year. Among these, it is worth mentioning the openings in two new markets, the Ukraine and South Korea specifically, both of which are located on the Asian-Eastern European area which is of great strategic importance for the growth of the Group.  Inditex plans to open in this and the next financial year over 500 stores in this area, where the markets with the greatest growth potential are to be found.  Ultimately, this will mean that by the end of 2009, the Group will have more than doubled its commercial presence in this area of the World. Sales breakdown by geographical areas:

	1H 2008	1H 2007
Western Europe	37.5%	36.8%
Spain	34.8%	37.9%
Asia and Eastern Europe	16.9%	14.3%
The Americas	10.8%	11.1%

Store number 4,000 in Japan

The Group will achieve 4,000 stores worldwide next Sunday, 21st September with the opening of a store of special importance in Ginza, the second in this shopping district in Tokyo, one of those with the greatest international prestige.  This year also brings the tenth anniversary of the presence of Inditex in Japan.

This significant rate of growth is possible thanks to the sustained investment policy, which in the first half of the year reached a total of 475 million euros, deriving both from these new openings and from the innovations and logistical expansions carried out in view of the international growth of the Group.

In the field of employment, Inditex has generated 3,030 jobs during the period, with the result that there are now 82,547 persons who are employed by the Group around the world. 

Excellent reception to Uterqüe

On 17th July, Uterqüe, the new concept in the Inditex Group, started its operations. It specialises in fashion accessories and complements. It currently has 15 stores in some of the most important Spanish cities. Continuing the international vocation of the Group, the concept will open its first stores in Portugal and Greece before the end of the fiscal year.  Sales performance over the first weeks of commercial activity has been better than the company expected, given the excellent reception to the commercial proposal by the public.

Beginning of 2H08

Good reception of our Autumn-Winter collections. The six weeks since the beginning of the second half show similar growth patterns to those of the first half.

Pull and Bear, the format of the Inditex Group that proposes casual fashion for young people, will set in train a double project next 11 September, the World Tree Day:

On the one hand, the format will start publishing its catalogue exclusively on its web site, in order to help prevent the potential deforestation to manufacture paper; the company will invite all its customers to visit its website www.pullandbear.com,

And on the other, it will start collaborating towards the reforestation of the Sierra Gorda Biosphere Reserve in Mexico, to help fight at the same time both the climate change and the poor living conditions of local communities. Through this initiative, Pull and Bear seeks to compensate the “carbon footprint” of its catalogues and to contribute to the environment also by planting some 13,000 additional trees in the above mentioned Reserve. This measure will entail that upwards of 16,000 trees will be planted.

In addition, Pull and Bear has launched an interactive micro-site to teach users how to be “green” while enjoying themselves at the same time with games and learning some tips. Through this campaign, both accessible and recreational, the fashion format intends to raise awareness about the climate change issue in a positive way, thus addressing the interests of its clients, young people committed to the environment.

Located in the State of Querétaro (México), Sierra Gorda has been protected to preserve its high environmental value and exceptional biodiversity. However, despite such protection, part of the lands has been deforested for agriculture and farming purposes.

The Reforestation of Sierra Gorda Biosphere project

The project titled “Carbon Sequestration in Communities of Extreme Poverty in Sierra Gorda” seeks to return its natural wealth to such lands, while at the same time fighting the poor living conditions of local communities, by creating a great number of small-size plantations directly handled by the owners, who receive remuneration for their work. Reforestation is done through the use of local species exclusively. This project is managed by local civil associations and the social strategy involves thousands of inhabitants of these communities.

This initiative provides an economic boost for locals equivalent to the income they might get from agriculture, thus ensuring a source of income for local population without having to deforest the land for agriculture and farming. 

By visiting the online catalogue, users will help prevent 400grCO² emissions and Pull and Bear will compensate at the same time 1,500 tCO², corresponding to the catalogues of the last 6 seasons. The company will thus contribute to the plantation of some 16,400 trees in aggregate.

This project is part of the Environmental Policy of Inditex and is being put in place together with the ZeroCO² campaign, a joint initiative of Fundación Ecología y Desarrollo and AccióNatura, which seeks to raise awareness of society members regarding the need to take immediate steps to fight global warming, by offering tools to calculate, reduce and compensate CO2 emissions.

At present, Pull and Bear has a network of 542 stores in 37 countries.

]]> Wed, 10 Sep 2008 12:03:55 +0200 http://www.inditex.com/en/press/other_news/extend/00000649 http://www.inditex.com/en/press/other_news/extend/00000649 Zara has opened its South Korean flagship store in Seoul where it has two other stores already. This new outlet spreads over more than 1,300 sqm. in M Plaza in Myungdong, one of the main shopping areas in the capital.

Furthermore it is the first store in South Korea to have a kids section. The children collection arrives for the first time in the Country, in this case with the 2008 Autumn/Winter Collection, inspired by folk, rock and the future: technical fabrics, pixels, vectorial prints and 3D graphics; green and electric blue sharpen the ice, grey and beige tones. For little girls, a nostalgic look back at those hippy days: patchwork dresses, suede coats and leather bags. Scarves, hats and tights completed this cheeky look.

The store, very visible from the street and located at a prominent site, has three access points –one from the street and two more from the building itself-. In more than 15 square meters of shop windows Zara will show its latest fashion proposal to the Korean public.

The selling area of the store is spread out in two floors. The ground floor offers the Woman and Basic lines. The collections of Trafaluc, Man and Kids can be found on the second floor.

Brown colours prevail in the image of the store whose flooring is of marble pulpis. The lighting has been specially designed to underline on the collections. The façade shows an exclusive image. In addition to the big shop windows, large images of the season are displayed, as well as a big logo of the brand -90 centimeters high- that provide a spectacular look to the store’s exterior.

]]> Thu, 04 Sep 2008 14:08:17 +0200 http://www.inditex.com/en/press/other_news/extend/00000641 http://www.inditex.com/en/press/other_news/extend/00000641 Bershka is today opening a store in Palafolls town centre (Barcelona) where customers will be served by people with Severe Mental Illness (SMI). It is Inditex Group’s second establishment in this town as part of the ‘For & From’ social integration project that Massimo Dutti started in 2002 in conjunction with Fundació El Molí d’en Puigvert, and it is the third ‘For & From’ project overall. The third store is also Massimo Dutti and is in Allariz (Ourense), set up alongside the Confederación Galega de Persoas con Discapacidade (Cogami) and run by persons with physical disabilities. The store has been in operation since November 2007.

The Bershka ‘For & From’ store, at number 7 Carrer Major, Palafolls, sells Bershka products from past seasons at a reduced price. This guarantees a level of trading activity in keeping with the aims of the project, and there are several technical solutions targeted at improving access and mobility for disabled persons.

The store staff consists of six people, four of whom have been diagnosed with a Severe Mental Illness (SMI). These employees have received special training from Fundació El Molí d’en Puigvert, specialists in implementing social and labour rehabilitation programs for persons with SMI in the Maresme region, as well as from Bershka staff. The employees receive support from El Molí and the fashion chain on a daily basis through support staff formed of instructors, a psychologist, a social worker and an occupational therapist.

Integration and mobility

Inditex has adapted the building and furniture in this store and has implemented various technical solutions that turn the premises into a point of reference for inclusion, accessibility and the removal of barriers. In order to select the technical solutions that facilitate mobility inside the store, Bershka drew inspiration from the Massimo Dutti For & From initiative in Allariz (Ourense) and receive specialist advice from Vía Libre (Fundación Once).

Some of the solutions include:

- Changing rooms: the size of the changing rooms makes them convenient for any user. Each changing room has a seat that is 45 cm. deep with support bars both at the back and on the side of the bench. There are 120 cm-high coat hooks within reach from the benches. In the changing room there are intercom switches near the support bars that are activated and notify the store staff if the customer inside the changing room needs anything.

- Aisles large enough to accommodate customers in a wheelchair.

- Till: part of the counter has been adapted for people in wheelchairs.

- Magnetic loop system: A magnetic loop system has been installed, taking advantage of the lighting points on the ceiling. The loop makes it possible to clearly transmit messages via a microphone connected to people with a hearing aid in the “T” position, in such a manner that the sound reaches the customers isolated from any environmental noise.

‘For & From’ project: Palafolls and Allariz

In 2001 the first contacts were made between Fundació Molí d’en Puigvert and Massimo Dutti, a chain belonging to the Inditex Group with headquarters in Tordera (Barcelona). With the aim of exploring new formulas for finding employment for vulnerable groups and persons with difficulties of integration, on 28th April 2002 the Massimo Dutti store was started up in Palafolls, in which people with severe mental disorders work. The achievements of this initiative are evident in the integration in social and employment terms of the staff. Over the last five years, the employees of Massimo Dutti in Palafolls have improved their health, with reductions in their levels of medication and a significant drop in their hospital admissions.

Following the success of the Palafolls project and in conjunction with the Confederación Galega de Persoas con discapacidade (Cogami), Massimo Dutti set up another similar initiative opening a store with a staff of five persons with varying degrees of physical disability in Allariz town centre (Ourense). This store incorporates several disabled access solutions and a library specialising in social issues, as well as a cultural space centred around reflection and debate on accessibility and exclusion.

The format is launched with the international vocation characteristic of all the chains of the Inditex Group and expects to open by the end of the year between 20 and 30 stores in major locations of Spanish, Portuguese and Greek cities.

The new concept of Inditex offers a range of high quality fashion accessories, including handbags, footwear and leather goods, costume jewellery and a selection of textile and fur garments.  All the articles have been designed by its own team of specialists working at the headquarters of the format in Arteixo, A Coruña. The logistics of the format, just as is the case for the remaining chains of the Inditex Group, is prepared for the continual renewal of the fashion offer in all Uterqüe stores.

The interior design of Uterqüe stores is inspired by the image of old English libraries, with a predominance of wood furniture which, in addition to neat lightning, sets a warm and nice atmosphere. Spaces within the stores for the display of the various ranges of products are delimited by the lightning and by the furniture. The environmental issue has also been considered both as regards the conception of the stores and the products. All materials used are recyclable and the facilities are designed to achieve responsible energy consumption.

Shareholders at Inditex’s Annual General Meeting, held today at Group headquarters in Arteixo (A Coruña), approved the company's 2007 annual financial statements and agreed to distribute a dividend of €1.05 per share from 1 August on. The total dividend amounts to €652 million, an increase of 25% from a year earlier. 

In his presentation to shareholders, First Deputy Chairman and Chief Executive Pablo Isla highlighted 2007 earnings, with satisfactory performance in the company’s sales and other financial indicators. Inditex’s sales rose to €9,435 million, 15% higher than a year earlier. Meanwhile, the gross margin on sales stood at 56.7%, vs. 56.2% in 2006. EBIT climbed 22%, while net income rose 25% from 2006.

Inditex in 2007 opened 560 stores, 441 of them outside of Spain. Inditex sharply increased its retail presence in the Asia Pacific region (up 32%), Eastern Europe (up 61%) and Russia (up 65%). The Group’s range of retail concepts opened stores in 50 countries, including four new markets: Croatia, Colombia, Guatemala and Oman. Korea and Ukraine joined them in 2008, bringing to 70 the number of countries in which shoppers can find Inditex Group stores.  

Eco-efficient Store

Pablo Isla also introduced shareholders to the Eco-efficient Store model and discussed implementation of the company’s To Wear Inditex standards: Clear to Wear, Safe to Wear and Tested to Wear. The three standards are seals of quality assurance and comply with the Code of Conduct drawn up by Inditex in accordance with the strictest international standards for health, safety and ethical practices.

Turning to the Eco-efficient Store, a cornerstone of the “Sustainable Store” project outlined in the Strategic Environmental Plan 2007-2010, Isla said that its rollout is one of the most significant Group initiatives in quantitative and qualitative terms, given the importance of the retail business at the Inditex Group, with more than 2 million m2 of retail floor space in 70 countries.

Inditex has completed an analysis of all of the measures the company will adopt in the design, construction, management, maintenance and renovation of its stores, with the goal of converting its shops into leading examples of energy efficiency, environmentally-friendly retailing, environmental impact mitigation and waste reduction. The Group’s Environment and Architecture teams, with the support of experts and technical staff at Galicia’s three universities, have developed a best environmental practice protocol which will allow Inditex and its suppliers to establish a working framework for putting the Eco-efficient Store into practice.

Based on this research, they have created an Eco-efficient Store Manual which will serve as the guiding document for stores across all of the Group's concepts.

Inditex will put this research into practice in October when it unveils the first two stores, one in Galicia and the other in Greece, allowing real-world testing of all of the newly-designed measures. After it identifies any additional solutions that may arise from this first, real-time Eco-efficient Store experience, Inditex will gradually extend the model to all new store openings and to renovations of existing shops.