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.



Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica's shares fell 21% in premarket trading on Friday, as the maker of high-end leggings warned that tariff-related costs and uneven demand in key markets of North America and China will dent its profits this year.

The Canadian firm, whose Align yoga pants sell for $128 apiece on its website, will raise prices "modestly" for a "small portion of the assortment" and ramp up discounts for the rest of the year, company executives said.

Lululemon has struggled to retain shoppers, despite its efforts to introduce new styles of sports bras and athletic jackets, as it faces intense competition from trendier and more affordable brands in North America and mainland China.

"Despite (Americas) decline, management continues to prioritize product newness and China expansion over addressing a pullback from core customers and evident traffic declines," Jefferies analyst Randal Konik said in a note.

"We believe this misalignment is concerning."

Lululemon joins sportswear rivals Nike and On in raising prices in the US as erratic trade tactics under President Donald Trump rattle global markets and fuel fears of a recession.

Lululemon trimmed its 2025 earnings forecast and said it expects margins to come under pressure from the proposed tariffs, which will impact products from some of its largest sourcing hubs in Vietnam, Cambodia and Sri Lanka.

"My sense is that in the US, consumers remain cautious right now, and they are being very intentional about their buying decisions," CEO Calvin McDonald said on a post-earnings call.

The company's stock, which is down about 14% this year, was trading at $261.90 before the bell on Friday. The news dragged Nike's shares down 1.4%.

Lululemon's forward price-to-earnings multiple, a common benchmark for valuing stocks, is 21.46, compared to that of 31.37 for Nike and 9.54 for Gap.