Weekly Retail & Leisure News - 20 June, 2016
British fashion retailer Ted Baker has reported strong results after successful international expansion and online sales growth. Group revenue increased 11.3% and retail sales rose 12.7% for the 19 weeks to June 11. Ted Baker has recently opened stores in Beijing, Ottawa and Seattle as well as establishing concessions in department stores in China, Japan, France, Germany and Spain. The retailer emphasises that its stores act as showrooms which are then supported by strong online capabilities. For further detail on how online operations can support international retailer expansion strategies please register for our latest global retail report, Destination Retail 2016.
In other positive news, Zara saw its UK sales rise by 8% to £535m in the year to January 31 as its pre-tax profits reached £58.3m. Furthermore, Zara's Spanish owner, Inditex, reported a 12% rise in global sales in its Q1 to April 30, boosting its quarterly profits by 6%. Inditex is one of the largest clothing retailers in the world, the firm has successfully expanded eight brands including Zara, Massimo Dutti and Pull&Bear, across 91 countries and now operates more than 7,000 stores globally.
Backing up the figures released last week by the BRC, the ONS has reported that May's retail sales grew by more than expected. Compared with last year, the volume of goods sold in stores and online increased 0.9%. Food sales rose 1.1%, while non-food sales gained 0.7%. This demonstrates that, despite the inevitable uncertainty caused by the EU referendum, the UK consumer continues to spend, supported by low inflation, rising real wage growth and falling unemployment.
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Director, Head of Retail Research (UK & EMEA)
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Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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