Zara Buys $550 million New Building

Economy Jamie Simon
http://stocknewsusa.com/wp-content/uploads/2016/10/Zara-Buys-550-million-New-Building-1024x768.jpg

Amancio Ortega, the richest man in Europe and founder of the group of fashion Inditex has acquired one of the most famous skyscrapers of Madrid in exchange for 490 million euros (551 million dollars) through its division of investment property according to sources cited by Reuters.

The acquisition marks a further step in the strategy to build an empire of billionaire real estate through Inmobiliaria Pontegadea, one of the largest real estate companies in Spain and its holding company Inversiones Pontegadea. Ortega has acquired properties in Mayfair and Oxford Street in London and properties in prime locations in New York, Madrid, and Seoul.

Zara is a retail company in La Coruña, Spain, which was founded in 1975 by Amancio Ortega and Rosalía Mera. This is the flagship chain store of Inditex Group, which owns brands like Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka.

It is claimed that Zara needs just two weeks to develop a new product and send it in stores, compared with the average of six months in industry and launches around 10,000 new designs each year. Zara has resisted the trend of moving production to less developed countries.

Perhaps its most unusual strategy was the policy of zero advertising, the company preferred to invest a percentage of revenues in opening new stores instead. This developed the idea that Zara would ‘copy fashion’ and make low-cost products.

Zara was described by Daniel Piette, the fashion director at Louis Vuitton, as ’the most innovative and devastating retailer in the world’. CNN has labeled Zara as ‘a Spanish story of success.’