Inditex looking to sell 16 Zara stores for €400 million
The world’s biggest clothing retailer, Inditex, is looking to divest itself of €400 million worth of real estate. The company is hoping to sell 16 Zara stores across the Iberian Peninsula in a “20-year sale-and-leaseback” agreement, bringing them into line with how the company manages the majority of its stores. Fourteen of the units are in Spain, and the remaining two are in Portugal.
Inditex’s share price is up by 4% over the last 30 days
SOURCE: Yahoo Finance
Inditex is betting that Spanish Ecommerce sales will catch up to the rest of Europe in the near future. Its first half revenue was boosted by an increase in online sales, but Spain still lags far behind the continent. Last year, the country saw just 3% of its retail done over the internet, against 8% in Europe as a whole, and 15% in the UK.
According to Andrew Allen, global head of real estate investment research at Aberdeen Standard Investments, the company is right to assume Spain will close the gap. He said that Spain might have “the lowest absorption of internet sales now,” it is also “expected to have the highest growth rate.” Allen thinks this will continue for at least the next four years: “We estimate annual growth in internet purchases of 18% per year to 2021 for Spain, versus an average of 12% for Europe as a whole.”
Dominion holds Inditex in its Global Trends Luxury Fund.
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