Store operations
Zara’s stores functioned as both the company’s face to the world and as information sources. The stores were typically located in highly visible locations, often including the premier shopping streets in a local market (e.g., the Champs Elysées in Paris, Regent Street in London, and Fifth Avenue in New York) and upscale shopping centers. Zara had initially purchased many of its store sites, particularly in Spain, but had preferred long-term leases (for 10 to 20 years) since the mid-1990s, except when purchase was necessary to secure access to a very attractive site. Inditex’s balance sheet valued the property that it owned (mostly Zara stores) at about
€
400 million on the basis of historical costs, but some analysts estimated that the market value of these store properties might be four or five times that amount.