Retail Banking Strategies

In a recent post I talked about Zara’s unique supply chain model and some potential implications for retail banks.

While Gap and other major apparel chains have seen declining sales and have been closing stores, Zara’s parent (Inditex, #2 in worldwide sales behind Gap) recently reported a 10% sales gain and improved gross margin – they already had one of the highest in the industry. As the Wall Street Journal reported, “A fast logistics system allows it to get clothes from drawing boards to stores in less than two weeks, compared with an industry average of nine months. Its lean inventory and fast shipments allow it to avoid profit-damaging markdowns.” Continue reading →