Zara owner in surprise decision to invest big despite cost-of-living crisis

The new capex plan comes after Inditex’s operating profit, up 29% to €5.5bn in the year through January, missed expectations. Picture: Collins

Zara clothing chain operator Inditex surprised investors with a plan to significantly increase spending on new stores and e-commerce despite closing more than 1,000 shops over the last three years and amid a wider market slowdown in online growth due to the cost-of-living crisis.

Shares in the operator of the Zara and Bershka chains fell as much as 3.6% on Tuesday after the retailer said it planned to invest €1.6bn in stores and warehouse expansion.