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Inditex Invests €238 Mn in a Building in New York’s SoHo

9/01/2015 – Expansion

Inditex gains ground in New York. The Spanish multinational clothing group has sealed a deal on a property located in the heart of SoHo, one of the best-known shopping heavens on the globe. It agreed to pay $280 million, or €238 million, for the new, 4.400 square meter retail space.

The property is set to become one of the flagship stores of Zara. Found at 503-511 Broadway Avenue, the building appears as one of the most representative among the 19th century commercial architecture of Manhattan.

Despite the purchase, Inditex still clings to lease and bets on “expansion based on integrated model of flagship shops and online sales”.

The group’s chairman Pablo Isla has highlighted that the opening of a new Zara in New York in 2015 will be a new hit in the process of growth in the United States, a market which is “very important” for the clothing retailer.

The property forms a part of a building erected in 1878 by architect John B. Snook within the Cast-Iron District.

This is not the only opening that Inditex scheduled in its Manhattan investments agenda. The group is going to open another flagship store in the World Trade Center in the financial district (222 Broadway), disposing of over 2.800 square meters of retail space.

Likewise, the spring will see the Fifth Avenue expanded shop re-opening. By 50% bigger, the store will occupy 4.000 sq m, Inditex informed.

In the territory of the United States, Inditex plans to open more than a dozen of establishments this year, in such cities as New Jersey, Las Vegas, Los Angeles, San Diego, Boston, Sacramento, Houston, Dallas, Chicago, Seattle and in Puerto Rico.

 

Original story: Expansión

Translation: AURA REE