Zara announces Sydney opening date

The long wait for Australia’s fashion lovers is almost over – Spanish-based clothing retailer Zara has announced it will open its first Australian store in Sydney on April 20.

The store, in Westfield’s Pitt Street Mall, will be spread over 1,830 square metres and three levels, making it one of the largest single-tenancy stores in Australia, apart from department stores.

The chain, which is owned by Spanish giant Inditex, also has a store in Melbourne’s Bourke Street Mall under development, although an opening date it yet to be set.

The Zara chain is known for its distinctive model which relies almost on the speed at which is can turn over its product range – it produces 22,000 new products every year, turning over stock nearly every fortnight.

This speed allows Zara to use minimal marketing, as shoppers are encouraged to regularly visit to see new items. The speed also allows Zara to quickly follow new trends and replicate popular styles to ensure its range remains current.

While Australia is thousands of kilometres from Inditex’s headquarters in Northern Span, the company has confirmed that its new Sydney store will receive new stock every two weeks.

Inditex’s latest financial figures underline the company’s ability to generate strong profits, even in a retail environment that remains subdued around the world.

In the 12 months to January 31, the company’s total sales rose 13% to $17.1 billion (same-store sales were up 3%) but profit surged 32% to $2.45 billion.

The company, which opened 437 new stores last year to take its tally to 4,044 stores in 77 countries, plans to open 400-600 stores in 2011.

Inditex, which is listed in Europe, was founded by Amancio Ortega in 1963, making robes and lingerie from his house and selling them to local shops.

But it was not until 1984 that the business really was set on its current growth trajectory. It was in this year that he met José María Castellano, a local professor and computer boffin who joined Inditex and helped develop a business model that allowed clothing to go from drawing board to shop floor in as little as 10 days.

In February, Ortega’s fortune was estimated at $31 billion.