// Despite seeing sales slump across its Irish stores, Zara is eyeing new store openings across the region
// The Irish division has reportedly said that, although the pandemic has had an impact on the business, it does not alter its long-term expectations
As stated by the Irish Independent, Zara is looking for potential new store locations in Ireland, despite the impact of the ongoing Covid-19 pandemic on its Irish arm.
In Ireland, the fashion retailer slumped to a €893,000 loss in its last financial year as it weathered the pandemic, newly-filed accounts show it had made a €4.5 million profit in the previous year.
However the company said that despite the impact of the Covid crisis, it’s still on the hunt for potential new locations from which to trade in Ireland.
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Zara, which is part of Spain’s giant Inditex group saw its revenue in Ireland fall 16pc to €91.3 million in the 12 months to the end of January this year.
The retailer currently trades from nine outlets in Ireland and also sells online.
The Irish unit said that the pandemic has had a “significant impact” on its business.
“Mandated store closures, limitations on capacity and travel restrictions have led to a decrease in the company’s earnings and profitability,” its directors noted.
They added that those declines were partially offset by an increase in online sales coupled with “responsible cost management decisions”.
They added that while the Irish arm didn’t open any new outlets during the financial year, it took the opportunity during the pandemic to revamp its outlet at the Pavilions shopping centre in Swords, north Dublin.
The refurbishment was undertaken to “keep the store’s layout and atmosphere in line with the Zara brand image,” it added.
“In the event that no unforeseen circumstances arise, the directors plan to open further stores as soon as suitable opportunities arise, and for the company to increase profitability as a result of the continuing increase in sales,” noted the directors.
The Irish division said in the accounts that the pandemic is a temporary situation that does not alter its long term expectations.
In its most recent results, covering the nine months to October 31, revenue at Zara’s owners Inditex rose 37 per cent year on year to £16.4 billion.
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