Inditex, parent company of fashion retailer Zara, is doubling down on its commitment to the Chinese market by optimizing its retail presence through the opening and upgrading of flagship stores.

The initiative aims to enrich in-store experiences with innovative technologies that prioritize convenience and personalization, encouraging younger consumers to spend more time shopping in-store.

Eugenio Bregolat, president of Inditex Greater China, said: "Inditex and its brands will continue to invest deeply in the Chinese market, remain committed to innovating retail experiences, closely follow and lead local fashion trends, and actively inject vitality into the domestic market and grow alongside the Chinese market."

Zara's flagship store in Xinjiekou, Nanjing, Jiangsu province, which opened on Friday, serves as a reflection of this strategy. Spanning over 2,500 square meters across two levels, the new venue prioritizes immersive shopping experiences designed to attract foot traffic and enhance offline sales amid the continued ascent of e-commerce.

"We look forward to opportunities with openings of such stores in key cities such as Shanghai, Beijing and Guangzhou, Guangdong province," Bregolat said.

The Chinese apparel market, although highly fragmented, has experienced growth in retail value from 2.16 trillion yuan ($297.3 billion) in 2023 to 2.19 trillion yuan in 2024, according to Euromonitor International.

To achieve greater profit growth in offline retail, many global and domestic fast fashion retailers, such as Uniqlo and Urban Revivo, are embracing a new trend. Unlike past strategies that focused on expanding the number of stores, this new approach centers around large flagship locations. These stores are designed to refresh branding and feature dynamic product displays.

For example, Chinese retailer Urban Revivo last month opened its 2,855-square-meter flagship store in New York.

Uniqlo, a Japanese apparel retailer, has also shifted its store opening strategy by replacing smaller, less profitable outlets with larger, premium locations across China in the coming years.

Inditex said in its fiscal annual report for 2024, "Optimization of stores is ongoing, and we expect this to drive further gains in in-store productivity."

The company anticipates an annual gross space growth of around 5 percent for the period from 2025 to 2026, with online sales also expected to contribute positively.

Central to carrying out Inditex's strategy are services and technologies that enhance shopper engagement. The flagship location introduced the "Zara Salon", a dedicated space offering exclusive collections and personalized styling services.

Fit Check, a self-styling area features "studio-grade" video recording capabilities, enabling customers to create and share their fashion choices on social media.

The store debuts an automated clothing vending machine — allowing customers to purchase essentials like T-shirts directly from the machine. An automated clothing transport system also delivers purchases more quickly to consumers.

Asia's first ZACAFFE was introduced in the store in Nanjing where customers can unwind, merging retail and leisure, said the company.

"Shopping online is now easy. We must give consumers a reason to visit the store," Bregolat said. "It's not just about good products, it's also about the experience and atmosphere."

Inditex's recent financial performance in 2024 showed strong growth, with sales rising 7.5 percent to 38.6 billion euros ($41.3 billion), boosted by both in-store and online channels. Gross profit increased 7.6 percent to 22.3 billion euros, while earnings before interest, taxes, depreciation and amortization climbed 8.9 percent to 10.7 billion euros.

Store sales showed an uptick of 5.9 percent, reflecting an increase in footfall and enhanced productivity. Online sales grew by 12 percent, reaching 10.2 billion euros.

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