Target’s Russo likely to miss his fast-fashion targets
According to Wesfarmers (ASX:WES) department store boss, Guy Russo, if he can get his model for Target right than Zara and the other international fast-fashion retailers will ‘regret making the trip down under’. Whilst I applaud his ambition, the world’s second-richest person and founder of Zara, Amancio Ortega, is unlikely to be losing any sleep. Zara is about as efficient as a fashion retailer can get, owning arguably the industry’s best supply chain. The company produces around 450 million items per year which it distributes to its network of 2,100 stores in 88 countries in as little as 48 hours in the case of its Australian stores. In total it takes approximately two weeks for Zara to get from the design and manufacturing stage to selling on the shop floor, long before anyone else can release similar clothes. That’s why it can charge a premium. With the ability to move goods so quickly around the world, Zara is able to minimise excess inventory and sell products at full price at rates higher than its competition. Read full article here: (VIEW LINK)
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