Zara Opens Flagship Store in China’s Nanjing with Cafe and Content Creation Studio 

People walk outside a newly opened Zara flagship store in Nanjing, Jiangsu province, China March 20, 2025. (Reuters)
People walk outside a newly opened Zara flagship store in Nanjing, Jiangsu province, China March 20, 2025. (Reuters)
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Zara Opens Flagship Store in China’s Nanjing with Cafe and Content Creation Studio 

People walk outside a newly opened Zara flagship store in Nanjing, Jiangsu province, China March 20, 2025. (Reuters)
People walk outside a newly opened Zara flagship store in Nanjing, Jiangsu province, China March 20, 2025. (Reuters)

Inditex-owned fast-fashion retailer Zara opened what it dubbed a new-style Asia flagship store in the eastern Chinese city of Nanjing on Friday as part of its global push to cut underperforming shops and double down on larger retail formats.

The Spanish company has put in place more digital integration and spaces designed to encourage shoppers to spend more time in-store, with the new features to be trialed in China before it decides whether to expand them to other markets.

The need to revitalize Zara's retail network has been particularly apparent in China. Multinational brands targeting the country's middle-class consumers have been squeezed by a broader spending slowdown as well as increased competition from local brands with nimble domestic supply chains and strong digital presences.

At 2,500 sq m (26,909 sq ft) spanning two floors, the Zara store in Nanjing's central business district of Xinjiekou includes a salon for private shopping experiences, complete with a lounge area and personal change rooms.

It also has a "fit check" studio with multiple cameras and lighting settings where customers can shoot their own video content and download it directly to their phones. Both are available to book via popular social messaging app WeChat.

The downstairs area also features the first Zacaffe coffee shop concept outside of Spain.

It is not the first time Zara has experimented with new concepts in China before exporting them to other markets. Its popular series of livestreamed shopping shows on Douyin, the Chinese version of TikTok, last year led the brand to experiment with similar livestreams in Europe and the US.

Inditex has been shrinking its store footprint globally over the past few years, seeking to optimize its selling space by focusing on flagship outlets in prime locations and ramping up online sales.

As recently as 2019 Inditex had 570 stores in China, its biggest physical footprint after Spain. That number had fallen to 132 as of January 31 this year.



Zara Owner Inditex Reports Weaker Than Expected First-quarter Sales

A woman carries a bag from Spanish multinational retail clothing chain Zara, the flagship brand of the Inditex clothing company, in the Gran Via of Bilbao, Spain, March 12, 2024. (Reuters)
A woman carries a bag from Spanish multinational retail clothing chain Zara, the flagship brand of the Inditex clothing company, in the Gran Via of Bilbao, Spain, March 12, 2024. (Reuters)
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Zara Owner Inditex Reports Weaker Than Expected First-quarter Sales

A woman carries a bag from Spanish multinational retail clothing chain Zara, the flagship brand of the Inditex clothing company, in the Gran Via of Bilbao, Spain, March 12, 2024. (Reuters)
A woman carries a bag from Spanish multinational retail clothing chain Zara, the flagship brand of the Inditex clothing company, in the Gran Via of Bilbao, Spain, March 12, 2024. (Reuters)

Zara owner Inditex missed expectations for its first-quarter sales on Wednesday, adding to doubts about the ability of the fast-fashion retailer to keep delivering strong sales growth in an uncertain economic environment.

Inditex also reported a slower start to its summer sales, with revenue growth of 6% from May 1 to June 9, compared to a 12% growth in the same period a year ago, Reuters said.

The company reported revenues of 8.27 billion euros ($9.44 billion) for its first quarter ending April 30, missing analysts' average estimate of 8.36 billion euros, according to an LSEG poll.

Fears of resurgent inflation and an economic slowdown triggered by tariffs have already dampened consumers' enthusiasm for shopping in the United States and elsewhere.

Cooler weather in Spain, which accounts for 15% of Inditex's global sales, has also probably hurt the retailer's performance, according to Bernstein analysts.