Press releases
Zara opens its first stores in South Korea
Zara will open its first two stores in South Korea tomorrow, bringing to 69 the number of countries in which Inditex does business. The first Zara stores to open their doors in Korea are in the capital, Seoul, one of the most important cities in the Asia-Pacific region due both to the strength of its economy and the size of its population, which exceeds 10 million people. One of the stores is in Young Plaza, one of the highest-traffic department stores in Korea, which is owned by the Lotte Group, Inditex’s partner in Korea. The second new Zara store is in the Coex Mall, the main shopping centre in the city's financial district.
Inditex is making its debut in the Korean market through a joint venture with the Lotte Group, Korea’s biggest department store operator and one of Asia’s leading retailers. Inditex controls 80% of the joint venture, while Lotte owns 20%. This venture will help Zara to develop its business in Korea thanks to Lotte’s valuable knowledge of this market and opportunities for new retail locations.
Zara will open a new store in Seoul in the next few months, in Myeongdong, the Korean capital’s busiest shopping district. Inditex plans to have five stores in Korea by the end of 2008. These openings are in line with Inditex’s expansion plan for the Asia-Pacific region, where the Group now has 93 stores. “Our retail proposition has been very satisfactorily received in Asia," said First Deputy Chairman and Chief Executive Officer of Inditex, Pablo Isla, during the FY2007 results presentation. “We see great long-term potential for Inditex in Asia.”
The Asia-Pacific region is the priority destination for Inditex in its growth outside European markets. Inditex’s target for retail space growth in this region is double the average for the Group in the rest of the world. Inditex increased its retail space in this region by 32% in 2007, opening 25 new stores in the seven markets in which it did business: Japan, China, Malaysia, Singapore, Indonesia, the Philippines and Thailand. So far in 2008, Inditex has opened ten new stores in the region. Coming months will see it open more stores in Asia, with China, Japan and Korea as its top priorities.
Inditex, one of the world’s largest fashion retailers, expects to open between 560 and 640 new stores in 2008, entailing an investment of nearly €1 billion. The Group posted sales of €9.44 billion in 2007. It has 3,824 stores in 69 countries, operating through its chains Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home, and employs more than 80,000 people worldwide.