I assumed H&M’s lower price point would translate into healthier profits. H&M may lead in total sales, but it’s shelling out 4.5× what Zara pays in royalties — ₹865 Cr vs Zara’s ₹190 Cr, eating into margins⤵️ (source - Entrackr) From what I’ve seen, Zara and H&M often occupy similar-sized stores in the same malls, so rent’s likely comparable→ Zara manages to extract far more value per square foot (₹132 Cr Avg rev per store v/s ₹51.2 Cr, H&M. | pricing does tilt the numbers a bit) ⏭️FYI→ Trent did ₹17,624 crore, up 39% (incl. Zudio + Westside), Revenue/store - ₹16.8 Cr (no yearly growth).
Download the medial app to read full posts, comements and news.