Why Zara is the most successful shop on the high street

The past 18 months have been, in so many ways, catastrophic for retailers. More than 8,700 chain stores closed in the first six months of this year, with the permanent closure of stores like Debenhams and Topshop leaving gaping holes on the high street.

There has been some recovery since the lifting of lockdown restrictions. In its second quarter results, H&M’s sales were 9 percent up on the same period last year, an improvement but not as strong as expected.

John Lewis saw only a 6 percent rise in sales, reporting a £29m pre-tax loss for the year's first half, despite eight store closures and over 1,000 redundancies. Next reported an 18.6pc increase in full price sales in the 11 weeks to July 17 compared with the same period before the pandemic.

Zara, though, has outpaced them all by reporting a 49 percent increase in sales yesterday and profits of 1.3 billion euros. So what’s its secret? Well, there are a few, and other high street brands would do well to take note.

Sweet spot prices

The high street customer wants to feel like they’re getting good value, and convincing them of that is a little more nuanced than just cheap, cheap prices. Zara’s products are all largely under £100, which is affordable for many of its shoppers, but not so cheap that they begin questioning whether quality, ethics and sustainability have been compromised.

The chain also caters to a broad range of shoppers: there are some dresses, blazers and trousers around the £70 mark, but there are also pieces around the £20 mark, so whatever the customer’s budget, it’s easy for them to find something they can afford.

Checked blazer (£69.99); and trousers (£29.99, Zara); Blue blazer (£79.99) and wide leg trousers (£29.99, Zara)

Trends for grown-ups

Zara is a company that knows its shopper very well, and while some of its lower prices are actually in line with those at Boohoo or PrettyLittleThing, its designers know that they won’t want the complicated cut-outs and body-con that those online faster fashion giants have become known for.

Instead, Zara takes an aesthetic lead from high fashion runways, serving up accessible trends that might appeal to women in their thirties, forties and fifties, as well as younger shoppers. There’s Chanel-esque tweed, pleated blouses, versatile midi dresses, colourful suiting, and they all look far more expensive than their price tags.

Cool collaborations

Zara doesn’t do many collaborations, but when it does, its partner brands are impeccably chosen, resulting in almost guaranteed success. Its collection of fragrances with Jo Malone CBE in 2019 sold rapidly, as did the more recent collection with ultra-cool Dutch label KASSL Editions.

By teaming up with more insider-y names, the collections don’t get the kind of overexposure and hype that means every item is identifiable as being from ‘that’ high street collaboration. It makes a Zara x KASSL Editions jacket or top, for instance, a better buy that will have more longevity in your wardrobe.

1. Trench coat (£79.99, Zara); 2. sparkly heels (£59.99, Zara); 3. cord shirt (£19.99, Zara); 4. leather bag (£69.99, Zara)

A more luxurious retail experience

I’m not saying Zara is anything like a visit to an actual designer boutique, but it has definitely borrowed some tricks to make browsing more of a pleasure. The rails only feature one or two pieces in each size, for example, so they’re not too crowded. It means staff must constantly resupply the shop floor, but it also means that rails are kept very tidy and there’s always a sales assistant around to help you, too.

The collections are arranged so that pieces that might look good together are hung side-by side. It helps the shopper see how each garment could be styled, and might even encourage them to buy both items.

Stores are also relatively spacious, which is something more associated with designer labels because high street retail space is expensive. So with the exception of sale season, a browse in Zara never feels too claustrophobic - a consequence of crowded rails and minimal floor space.

Amping up online

Zara has a great e-commerce presence, which came into its own during the pandemic when brick-and-mortar stores across the globe were closed. Online sales surged by 95 percent in April 2020, and Zara was one of the few chains that could meet customers’ demands.

Zara’s executives predicted that this shift to online would stick even after lockdown had ended, so it made the call to permanently close 1,200 stores worldwide. It meant that it could focus on making the remaining stores as inviting as possible, while also investing in its thriving e-commerce arm.

What do you think makes Zara so successful compared to other high street shops? Let us know in the comments section below