Zara opens new flagship store in Nanjing, China

The store features the brand's first Zacaffe coffee shop concept outside of Spain.

Zara, owned by Inditex (ITX.MC), has opened a new flagship store in Nanjing as part of its global strategy to optimise its retail network.

The 2,500-square-meter store, located in the Xinjiekou district, is part of Zara's plan to close underperforming shops and focus on larger, more experiential retail spaces, Reuters reported.

The store features digital integrations and spaces designed to enhance the shopping experience, including a private shopping salon, personal changing rooms, and a "fit check" studio with video recording capabilities. These features are available to book via WeChat and will be tested in China before potentially expanding to other markets.

The move comes as multinational brands face increased competition in China, with local brands gaining ground through better supply chains and digital presence. Zara's store also includes its first Zacaffe coffee shop outside Spain.

Inditex has been shrinking its global store footprint, focusing on flagship locations and boosting online sales, the report noted. Zara's store count in China has dropped from 570 in 2019 to 132 as of January 2025.