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02/24/2006
The Russian market has huge potential for the Spanish label
In a bid to take total control of the label’s growth policy, Spanish fashion house Inditex is acquiring 100 per cent equity in its Zara Russia subsidiary. Zara Russia had been owned by Finnish group Stockmann, with which Inditex has had a franchise deal since 2003, due to end in 2010. Now, Inditex is paying €41.5 mill. to recover its operating licence and manage its six Zara outlets in Moscow directly.
The acquisition is part of the Spanish group’s ambitious growth plan in Russia, where it plans to expand both Zara and other group labels like Oysho, Bershka, Massimo Dutti and Stradivarius. Having so far confined itself to the Russian capital, Inditex now plans to open seven new stores both in Moscow and elsewhere in Russia in 2006. Three of its current six stores opened in 2005, including its flagship on the central Tverskaya Street.
