Fashion retail giant Zara's success is no secret

CHLOE STOKES | July 5, 2018

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One of the first things Steve asked me to do when I started at Forager was to identify my circle of competence.Five minutes in a room full of value investors and I realised there’s one thing they know nothing about.And unlike Alvise, there are few things I enjoy more than a visit to a Zara store.In fact, as it turns out, I spend hours every week doing incidental scuttlebutt. The retail industry is out of favour. Articles predicting the demise of bricks and mortar stores abound and the sentiment around the sector is generally one of pessimism.And with good reason. You don’t need to be a Myer shareholder to know retailers are struggling. Take a quick walk through your local shopping centre. Every second store is having a sale.This blog is not going to be another hatchet job on the industry, though. In fact, it is quite the opposite. Yes, consumer preferences are changing. Yes, there are new competitive threats arriving almost weekly.But retail is a huge and growing part of the modern economy and plenty of people (myself included) still love the bricks and mortar experience. For the right concept well executed, opportunities for investors are immense.

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