18.Sep - The world's largest clothing retailer Inditex sees signs of recovery from a rare period of relatively weak performance. As David Pollard reports sales were up 10%.
10 percent is today's daily digit - the increase in sales at the world's largest clothing retailer. The figures for the start of the third quarter suggest Inditex may be emerging from a rare period of weak performance. The owner of Zara and seven other brands operates a "fast fashion" model which has helped it ride the economic crisis. It produces affordable versions of catwalk trends in small quantities, meaning it can respond quickly to consumer demand or a lack of it. It's also invested heavily in Asia and emerging markets to counter the recession in Europe. 2012 was particularly good but in the first half of this year Inditex was hit by poor weather and weak foreign currencies. Its rival, Sweden's H&M, has, in contrast, seen recent improvements after struggling during the crisis. Some analysts thought the recovery in Europe could lead to a reversal of fortunes. This latest 10% sales increase at Inditex suggests not, but results from H&M next week will be watched with interest.