Major fashion brands are rethinking their store portfolio

Last month, Zara opened its largest store yet, a whopping 9,000 square meter fashion haven in the Dutch city of Rotterdam. The building, which was formerly a C&A department store, has been transformed into a mega brand experience as parent company Inditex adapts its international store strategy. There are similar XL destinations in Paris and Miami.

Across five floors, Zara is redefining the retail landscape in Rotterdam with curated and experience-oriented fashion. At the same time, the brand is closing smaller and less significant stores and using larger spaces for merchandising and immersive branding. This expansive approach enables the presentation, sale and experience of a wider range of categories under one roof, ranging from cosmetics and sportswear to furniture and home goods. At the Antwerp Zara Home store, almost a third of the retail space is devoted to fragrances and candles, a thriving and fast-growing category.

The days of rushing to the checkout to avoid long lines and wading through confusing shelves of unsold clothing seem to be a thing of the past.

Zara is not alone in this trend, as other large companies are also opting for larger spaces, according to the Wall Street Journal. After Ikea, which opened an inner-city branch on Oxford Street, Apple long ago introduced the concept of “destination shopping”, in which the demands and experiences in large spaces are placed above the pure purchase of products. The leather benches and planting of the London flagship store attract customers to see and experience the products and perhaps even stay for a while. Since traditional checkouts and payment counters have been eliminated, Apple employees are equipped with mobile payment devices and can serve customers anywhere in the store.

“Destination Shopping”

While major corporations like Inditex and H&M are streamlining their operations by closing certain stores to control costs, they are also investing in larger spaces to showcase more of their brand offerings. These redesigned spaces often feature beauty stations, coffee corners, virtual browsing zones and unique additions such as a Japanese tea shop, as seen at the Uniqlo store in Covent Garden. H&M’s modernized Regent Street branch features a nail station, lash bar, clothing rental service and floor-to-ceiling TV screens. Clothing is also sold there.

The traditional idea that concept stores are reserved exclusively for luxury fashion and niche brands is changing. Stores like the iconic 10 Corso Como in Milan and the now-closed Colette in Paris were known for offering unique and exclusive pieces from luxury brands and guest designers, along with “capsule merch drops,” emerging brands, music, food, exhibitions and other events. Milan’s 10 Corso Como is also home to one of the city’s best art bookstores, and its garden restaurant attracts a fashion-conscious crowd all year round. But the shopping street has also caught on.

While online platforms facilitate much of the search and discovery process, physical stores remain crucial for brand loyalty. The traditional retail strategy of being present on every corner in every city is evolving as brands opt for fewer but better stores. According to the Wall Street Journal, Inditex’s strategic move to close a quarter of its stores since 2018 helped total store sales increase 8 percent in 2022 compared to the previous four years.

Creating memorable in-store experiences in new centers will further increase brand loyalty. Customers who shop in physical stores may come to get a beauty treatment or meet friends for coffee. Tomorrow they might shop online.

This article originally appeared on FashionUnited.uk. Translated and edited by Simone Preuss.

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