Inditex, corporation behind the Zara organization has purchased early this year the National Basketball Association's old store on Fifth Ave. is the country's most expensive real-estate transaction, measured in dollars per square foot with the mouth dropping amount of $324 million.
It is their priority to grow within the Asian and European markets, but on a medium and long-term basis the U.S. market is also quite important for therm. This purchase along with the online launch is a milestone for its US take over. The company calculates that the group now takes in roughly €250 million ($353 million) a year from its U.S. stores.
That's a fraction of Inditex's €12.5 billion in global sales last year. Mr. Meijer, ING retail analyst, expects that the group could quadruple sales in the U.S. by 2014, with a majority coming from online sales.
This optimistic investment has other players, both physical and online stores, on their tip toes trying to stay ahead of the curve. For example, Amazon.com is currently re-designing their site and upgrading their site's technology, on the same hand, Amazon's direct budget competitor, Walmart, is also re-strategizing their in-store sales by introducing once again "Lay-Away"
This move is crucial for Inditex in order to actually make a stand in the US market. By allocating their brand on
the main streets in New York and at this location will step stone this company into US stardom
I see this Zara trend taking over a large portion of the market they niche, leaving many of their competitors
re-strategizing and trying to keep up
http://online.wsj.com/article/SB10001424053111903895904576546651628934210.html
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