Wednesday, January 30, 2013

Inditex buys Zara franchise in Finland, the business of self-expansion

Inditex headquarters

It is best not to have your business intermediaries, Inditex knows it, hence further promote the process of buying the franchises operating under its brands. In this case you purchased the Zara franchise in Finland Stockmann group ownership. In total, four stores in addition to the network of own shops all over the world.

This acquisition does not change the status of Zara stores in Finland, according to the company:

The acquisition will also Zara Finland incorporating template franchise Inditex Group with the same rights and conditions that had been enjoying so far.

Inditex stores controlled indirectly through a broker since 2001, which premiered in Finland. Zara currently has four stores in the country: two in Helsinki, Turku and another one in Vantaa.

Other franchises acquired

Massimo Dutti Massimo Dutti store in Amsterdam, Netherlands.

In recent years, Inditex has acquired some of the franchises operating on their behalf. Only in 2011 invested 118.8 million euros in buying franchises some of its stores. Including:

  • Belgium, Luxembourg and Portugal: Massimo Dutti was in Belgium, Luxembourg and Portugal under franchise and January 26, 2012 Inditex reported the purchase of a total of 67 flagship stores, 22 in Belgium and 45 in Portugal. For a total of 103 million euros (73 million euros for Portugal and 30 million euros for Belgium).
  • Kazakhstan: the August 8, 2011 the Inditex Group reported the acquisition of the stores that the company managed Fawaz Alhokair. Seven stores Zara, Pull & Bear, Massimo Dutti, Bershka and Stradivarius. Inditex arrived in Kazakhstan in 2009. While Inditex joins Fawaz Alhokair to land in Georgia and Azerbaijan, which works with the company since 1999, which came into Saudi Arabia.
  • Serbia and Montenegro: the May 5, 2011 Inditex acquired the 19 stores Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho spread across both countries and belonging to the company Delta Sport. An operation which closed on 15,800 thousand.
  • Belgium: in 2011 Inditex took complete control of the network Uterqüe stores in that market.

The management of Inditex stores

Inditex

As we read in the annual report submitted by Inditex in 2011 , the company addresses its business this way:

The business of each of the formats were developed through chain stores directly managed by companies in which INDITEX holds all or most of the capital, except in certain countries where, for various reasons, the activity of retailing is done through franchising. Some franchise agreements entered into by the Group provide for the existence of options which, if exercise would, in substance, the Group ensuring access to the leasehold premises in which are open and franchised stores of assets associated with these stores. These options may be exercised after a specified period from the date of signing of the franchise agreement.

673 franchises spread across the world

Inditex franchise stores

A January 31, 2012, Inditex had in its annual report that it had 673 franchises located throughout the world. In Spain only 34 are franchised while 1,898 stores are proper. Rest of Europe: 115 versus 2199 own.

Inditex franchises

The largest number of stores it has in a brand's franchise low with Zara, with 182 agents throughout the world, clear that the total number of establishments is also the largest, with 1830. The following Stradivarius with 123 franchise stores, with 105 Bershka and Pull & Bear with 96. The franchise that has fewer stores, also because there is less overall, is Uterqüe, with 17.

It is interesting to see the percentage of sales generated in its own stores and franchises. Massimo Dutti stands at 27% of the total and Zara, despite being the most franchise sales from these only amount to 13% level with 13% Bershka and Oysho only surpassed by 12% and Zara Home with another 12%.

Inditex sales benefit

Net sales of all franchises of Inditex group in 2011 contributed EUR 1,050,371, while in 2010 this number was 915,284 euros. Meanwhile, net sales in its own stores arrived in 2011 to 12,601,344 euros in 2010 to 11,465,693 euros.

The Inditex Group franchises acquired in 2011 earned him since April 27, 2011 35 137 thousand in sales and generated a profit of 3,273 million euros, according to its 2011 annual report.

Official site | Inditex
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