The UK arm of global furnishings retailer Zara Home experienced a 2.6% drop in sales for the year ended 31 January 2016, resulting in its first ever decline in turnover.
According to Zara Home’s latest filed accounts, total sales fell to £15.7m from £16.1m in 2015, while pre-tax profit also slowed by 15.9% from £2.5m down to £2.1m over the same period.
Despite the lull in performance, Zara revealed that it plans to continue to invest in its store portfolio – after not opening any new stores in the year under review, by announcing the launches of two new outlets earlier this year, which opened in Leeds and the Trafford Centre in Manchester.
Commenting within the strategic report, Zara confirmed: “The directors plan to open further stores as soon as suitable opportunities arise and for the company to increase profitability as a result of the continuing increase in sales.”
Trading across 10 stores in the UK at close of business, Zara Home also revealed that it plans to open a new store in The Friary Centre in Guildford this summer after agreeing a 10-year lease.
Zara Home UK is a subsidiary of Spanish fashion retail giant Inditex and specialises in the trading of soft furnishings and occasional furniture items.