New stores boost Zara Home sales 31% but profits plunge

2nd October 2009 | retail | The seven store homewares arm of Spanish retailer Zara has pinned the blame for a £911k pre-tax loss in the year to January on the financial crisis and falling disposable income.

Zara Home opened two stores during the year, in Liverpool and White City, London, which helped lift sales from £4.5m to £5.9m. Management expressed disappointment with the firm's like for like sales performance saying it was below expectations.

The firm has four other London stores and another in Surrey. Pre-tax profits in the year to January 2008 had been £67,000.

Zara Home has 211 stores across Europe and a further 31 worldwide. It says it will continue to open more UK stores when opportunities arise. The retailer sells soft furnishings including bedlinen, rugs and assorted home accessories.