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Zara Eyes the Home Goods Market

The world’s largest retailer, Inditex, hopes to score big with Zara Homes. Bloomberg reported that the Spanish retailer is pushing to have home goods stores everywhere its clothing store operations. During the nine months ended Oct. 31, Zara Home opened nine more stores, bringing the total number of locations to 420 worldwide.

Cruz del Barrio, head of home and garden research at Euromonitor, told Bloomberg, “They are creating a market. They sell you a lifestyle. It’s very inspirational.”

Zara Home sales are growing at a faster pace than all of Inditex brands, including Zara and Massimo Dutti. However the store has a ways to grow to compete with home good giants like Ikea, which is forecasted to be worth $695 billion by 2018. In 2013, Zara Home reached $555 million in sales.

Still, the retailer is backed by brand recognition, which Raymond James Financial analyst Cedric Lecasble told Bloomberg is key to growing Zara’s home business. He said, “There’s the possibility to build a segment with limited expenditure in terms of promotion and advertising, because the brand is already strong in the given country, so it’s a natural kind of move.”