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Zara at 50: how the brand rose to the top – and what it’s doing to stay there | Zara

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In Arteixo, northern Spain, workers are putting the final touches to a gigantic white box of a building, fixing windows and planting greenery in the new global headquarters of the fashion brand Zara, which turned 50 this year.

The site, complete with a private high street where the retailer will test out its latest store concepts, is not far from the small store on the corner of a nondescript street in the centre of nearby La Coruña where, in 1975, Amancio Ortega opened his first fashion store.

From those humble beginnings grew Inditex, a fashion empire that today boasts seven brands including Zara, Massimo Dutti, Bershka, Pull & Bear and Oysho. It has more than 5,500 stores in 98 countries and an online presence in 116 more – from the US and UK to Zimbabwe and Uzbekistan.

Zara, which has been worn by the Princess of Wales, Taylor Swift and, controversially, Melania Trump, was the first brand in the group and remains by far the biggest. It is budget friendly but not super cheap, drawing in shoppers with affordable tailoring and on-trend items, especially dresses – most famously the 2019 polka dot viral dress.

Ortega, who at 89 is still regularly seen at the head office chatting with staff, was a local clothing manufacturer who had worked his way up from being a delivery boy at a shirtmakers when he opened his first shop. He is now the 12th richest person in the world according to Forbes, with a net worth of about $120bn (£880m).

Zara’s first store in La Coruña, 1975. Photograph: Courtesy of Zara

More than 160,000 people work for the company he founded, more than 5,000 of them at the Inditex HQ in Arteixo, a complex which includes the new, soon to be opened Zara head office. Together they helped ring up sales of €38.6bn (£33.3bn) last year and profits of €7.6bn.

As the Guardian was given rare access to the building’s gleaming white corridors, staff whizzed past on electric scooters or even bikes to navigate the vast site.

But as the company hits middle age, Inditex faces challenges. Sales growth slowed to 4.2% in the most recent quarter, a slowdown from 10.5% in the previous quarter.

Like many other retailers, the company is reducing its overall store estate – with a net 136 stores closed in the past year.

The slowdown comes only a few years after a changing of the guard at Inditex, when the founder’s daughter Marta Ortega Pérez stepped in as chair while former lawyer and banker Óscar García Maceiras became chief executive.

Local boy García Maceiras, who joined in 2021 from Spain’s Banco Santander, is seen as an outsider with quite a lot to prove.

When we meet in his spacious office, the conservatively dressed CEO, in tight-fitting blue suit and shirt, is bullish about the company with which he shares a 50th birthday year. “We remain very confident in our capability to keep on growing,” he says.

Former lawyer and banker Óscar García Maceiras became chief executive of Inditex in 2021. Photograph: Brais Lorenzo/Bloomberg/Getty Images

While store numbers are reducing globally, the amount of space devoted to Inditex fashions around the world will increase by 5% this year as it shifts to ever larger outlets.

In the UK, for example, next month Zara will reopen its doors at Manchester’s Trafford Centre with a store that is 40% bigger than before, while Pull & Bear is doubling the size of its outlet there. Meanwhile, Bershka will open its first store in Manchester.

Bershka is also opening a new store in Glasgow this summer while Stradivarius, another Inditex brand, is opening there and near Newcastle later this year. The group is also looking for a site for The Apartment, a new concept that combines premium Zara clothing and , in a store laid out like a stylish influencer’s home. Right now there are only three in the world – in La Coruña, Paris and Madrid.

The Apartment shop floor. Photograph: Zara

The UK expansion comes despite retailers’ warnings that a rise in taxes might depress new store openings and hit jobs.

“We keep on considering the UK a very relevant and attractive market,” García Maceiras says.

Similarly in the US, Inditex’s second-biggest market, he says the company will flex its supply base, which includes factories in 50 countries, to deal with whatever tariffs the Trump administration settles on. Inditex doesn’t use factories in the US or Americas at present – but García Maceiras doesn’t rule it out for the future.

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Part of the challenge for well-established fashion brands is the rise of online fast fashion specialists Shein and its fellow Chinese-founded digital behemoth Temu.

García Maceiras shrugs off such upstarts, saying Inditex is competing on style rather than low prices and that the fashion industry has so many players that success is not dependent on a single rival.

“This is a market so highly fragmented that your level of success could depend basically on your own capacity of spotting trends and executing those,” he says.

“The fashion sector is connected with the inspiration and aspiration, and that is something that requires permanent innovation and a permanent mindset of listening to customer needs and customer desires in order to spot trends.

“The idea for us going forward is to keep on innovating every day, to adapt with an enormous level of flexibility to what our customers are looking for.”

Inditex’s unique manufacturing model is based on producing about half its stock in relatively small amounts and less than a month before it hits the shop floor. Photograph: Zara

This is where Inditex thrives – with an almost unique model based on producing about half its stock in relatively small amounts and less than a month before it hits the shop floor. Even if something is incredibly successful, it will never be reproduced exactly again.

When the weather or the economic climate turns against them, most retailers must plough ahead with plans made more than six months in advance. At Inditex, every store receives a tailored assortment delivered twice a week. Local managers have considerable control over what flows into their stores – feeding back what is selling, and what customers are asking for.

Its new larger stores are, meanwhile, designed to house an ever broadening array of products and services. That includes more premium product to tempt in a broader range of shoppers.

The new stores are also given an upmarket feel, using material made from recycled ceramics that looks like marble, and split into departments to house sportswear, footwear and other growing categories.

Technology is also helping lower costs and aiming to improve service. In Manchester, shoppers will be able to return or pick up goods bought online with a scan of a barcode thanks to robot-operated systems, while a new gadget will automatically sort unwanted items from the changing rooms.

Many of the tills will automatically scan in basket loads of purchases with the use of smart radio-frequency tags.

The group is also trying out different kinds of services including cafes, now in a handful of stores in Spain, Japan, South Korea and China.

García Maceiras says constant change is the key to the business staying healthy into middle age. “This is a business in which you should take nothing for granted.”



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Three ways you can make AI generate business leads for you

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For quite a while now, people within the business community have been talking about how AI continues to improve task efficiency and streamline operations, but few are truly exploring how this new era is affecting new business lead generation.

Since opening Agent99’s doors 18 years ago, part of my new business strategy has simply been to ask people how they found us. The majority of our leads come through referrals, followed by Google. However, just last week, I was on two new business calls and when I asked both prospects how they came across Agent99, they gave the same surprising response: “by asking ChatGPT”.

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Where consumers and clients once relied on Google for recommendations, be it agencies, restaurants, dry cleaners, or anything in between, that’s no longer the default.

Today, people are entering these same queries into AI tools and expecting real-time, curated answers based on a mix of web data, reviews, and sentiment. And this shift has caught many business owners off guard. A high Google ranking no longer guarantees your business will be visible or recommended through AI platforms. All that work on your SEO strategy? It’s no longer the only game in town.

This was a light bulb moment for me as a business owner. If you’re not thinking about how you rank on AI platforms and prioritising this, you’re losing new business opportunities.

When I took a deeper look at why we were ranking so well on ChatGPT, and how this new kind of ‘search engine’ prioritises content, I realised (after some thorough research) that it’s because we’ve consistently focussed on our own PR (ie third party credible endorsement), winning awards, garnering reviews from our clients, and reporting on our marketing campaigns on our own website blog and social pages. This is what AI platforms prioritise when making recommendations. 

So, if you’ve noticed a dip in leads lately or you simply want to boost your company’s visibility in the AI space, here are three strategies I strongly recommend. 

Make your SEO plan AI-friendly

It’s no longer enough to optimise your company website for Google alone. Instead of short, Boolean-style search queries, people are now asking long-form, conversational questions. And in response, tools like ChatGPT are generating concise, curated answers drawn from a wide range of sources — with a clear preference for natural, human-sounding language.

It might seem ironic that AI prefers human content, but it’s the new reality.

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To match this, we recommend rewriting key pages on your website, starting with your ‘About’, ‘Services’ and ‘Home’ pages, using language that mirrors how real people would ask for your services in everyday conversation.

For example, instead of writing: “We deliver integrated management solutions,” try: “We help Australian businesses develop management strategies that support sustainable growth”.

If relevant, start a blog that directly answers the kinds of questions people might be asking ChatGPT, and think carefully about how they’re asking them. Once you’ve mapped out your content strategy, commit to publishing consistently. AI platforms favour businesses that post regularly and demonstrate long-term authority in their field.

Prioritise earned media and content

AI tools place more weight on what others say about your business than what you say about yourself. So, while your website content is important, the next priority is securing earned media coverage. This includes article mentions in credible publications and thought leadership content in niche outlets relevant to your industry.

While the media landscape has evolved, organic coverage on high-authority platforms still carries serious influence. That includes local business media, trade publications, and long-form podcasts — especially those with strong digital footprints. A single mention in a well-respected outlet often holds more weight than a dozen paid ads in the eyes of AI.

You should also be submitting your business for awards, rankings, and “Best of” lists. Third-party recognition like “Top PR Agencies in Australia” or “Best Accountants in Melbourne” dramatically increases your chances of being recommended by AI tools for those search terms.

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Lastly, make sure you’re actively collecting client testimonials and online reviews. Reach out to past and current clients and ask for a testimonial you can publish. Genuine, positive sentiment from others boosts your ranking and trust level within AI results.

Show up where conversations are happening

A lesser-known — but highly effective — way to improve your AI visibility is by showing up where your audience is already talking. Think Reddit, Quora, LinkedIn comments, Facebook groups, and even the comment sections of popular blogs or YouTube videos. AI tools are constantly crawling and learning from these conversations, and businesses that participate meaningfully often see a lift in visibility.

Start by choosing two or three platforms where your target audience is most active. If you’re B2B, this might be LinkedIn or industry forums. If you’re more consumer-facing, Reddit, TikTok, or Facebook might be the place. Jump in, answer questions, share your perspective, and most importantly, offer value.

When your brand is mentioned organically or involved in high-engagement threads, it sends strong signals to AI tools. Over time, this can help position your business as a credible authority in your space.

Also, respond to users who tag or mention your brand on social platforms. Engaging with user-generated content builds trust, encourages loyalty, and creates digital breadcrumbs that prove your relevance and responsiveness — two factors that AI prioritises more than ever.

AI isn’t just a trend; it’s a fundamental shift in how consumers discover and choose businesses.

Rather than fearing this new giant in the room, lean in. By understanding how AI platforms work and proactively shaping your digital footprint, you’ll improve your ability to attract quality leads, earn recommendations, and strengthen your brand presence in what’s becoming an increasingly competitive and complex market.



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Maternity brand Seraphine worn by Kate enters administration

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The maternity fashion retailer Seraphine, whose clothes were worn by the Princess of Wales during her three pregnancies, has ceased trading and entered administration.

Consultancy firm Interpath confirmed to the BBC on Monday that it had been appointed as administrators by the company and that the “majority” of its 95 staff had been made redundant.

It said the brand had experienced “trading challenges” in recent times with sales being hit by “fragile consumer confidence”.

The fashion retailer was founded in 2002, but perhaps hit its peak when Catherine wore its maternity clothes on several occasions, leading to items quickly selling out.

Prior to the confirmation that administrators had been appointed, which was first reported by the Financial Times, Seraphine’s website was offering discounts on items as big as 60%. Its site now appears to be inaccessible to shoppers.

The main job of administration is to save the company, and administrators will try to rescue it by selling it, or parts of it. If that is not possible it will be closed down and all its saleable assets sold.

Will Wright, UK chief executive of Interpath, said economic challenges such as “rising costs and brittle consumer confidence” had proved “too challenging to overcome” for Seraphine.

Interpath said options are now being explored for the business and its assets, including the Seraphine brand.

The retailer’s flagship store was in Kensington High Street, London, but other well-known shops, such as John Lewis and Next, also stocked its goods.

The rise in popularity of Seraphine, driven in part by Royalty wearing its clothes, led to the company listing on the London Stock Exchange in 2021, before being taking back into private ownership in 2023.

Interpath said in April this year, the company “relaunched its brand identity, with a renewed focus on form, function and fit”.

“However, with pressure on cashflow continuing to mount, the directors of the business sought to undertake an accelerated review of their investment options, including exploring options for sale and refinance,” a statement said.

“Sadly, with no solvent options available, the directors then took the difficult decision to file for the appointment of administrators.”

Staff made redundant as a result of the company’s downfall are to be supported making claims to the redundancy payments service, Interpath added.



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Landmark day for victims as initial findings expected

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Tuesday will mark another big milestone in the long road to justice for the victims of the Post Office IT scandal.

The chair of the inquiry into it – Sir Wyn Williams – will publish the first part of his final report, focusing on compensation and the human impact of the scandal.

Thousands of sub-postmasters were wrongly blamed for financial losses from the Post Office’s faulty Horizon computer system, which was developed by Fujitsu.

More than 900 people were prosecuted and 236 were sent to prison in what is believed to be one of the biggest miscarriages of justices in UK history.

Sir Wyn put those victims at the heart of the inquiry’s work, which has pored over several decades worth of technical evidence and grilled many of those who had a role in ruining so many lives.

Dozens of sub-postmasters gave evidence too – many who had lost their businesses, their homes and some who served prison sentences.

Sir Wyn’s findings on their treatment will surely be damning given everything he has heard since the inquiry began in 2022.

The inquiry became almost box office viewing – racking up more than 20 million views on YouTube, with people with no connection to the Post Office following it closely.

However, it is going to be months before we find out who Sir Wyn will point the finger of blame at.

That will come in part two of the report, meaning that accountability is still a long way off.

Sir Wyn has taken a big interest in compensation for the victims, admitting at one point that he’d stretched his terms of reference on the issue, “perhaps beyond breaking point”.

He held four separate hearings on redress and issued an interim report in 2023, likening the various schemes to a “patchwork quilt with a few holes in it”.

Victims and their legal representatives still battling to secure final payouts will be looking to see what his conclusions are on compensation and whether it is living up to the mantra of being full and fair.

They hope his recommendations will result in more action.

Still, you might be wondering why we’re only getting the first part of the final report.

Sir Wyn knows how pressing compensation is to many of the victims and that’s why he wants to publish his recommendations on the issue as soon as possible.

“It’s something I am very keen to say as much about as I reasonably can,” he told the inquiry last year.

But the implication from this is that part two – establishing what happened and who is to blame – isn’t coming out any time soon.

This second report may not be published until 2026 given the sheer volume and complexity of the evidence as well as the need to give those who are criticised the chance to respond.

As for justice, any criminal trials may not start until 2028. Police investigating the scandal confirmed last month that files won’t be handed to prosecutors until after the final inquiry report is published.

After years of waiting, even after part one of Sir Wyn’s report is published, the sub-postmasters’ long road to justice will continue.



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