Sat, 21 November 2009
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Ongoing massive discounts offered by clothing retailers like Zara, Sfera
and Cortofiel may spell disaster for Spanish economy.MADRID - Faced with declining sales due to Spain's worst recession in a generation, Spanish clothing retailers like Zara have launched a fierce price war that has contributed to the risk of deflation.
The official summer sales period only gets underway at the end of June, but for the past few weeks signs announcing massive discounts have popped up in clothing store windows across the country.
At the flagship store belonging to Sfera, the clothing chain set up by Spanish department store El Corte Ingles to compete with Zara, colourful stickers advertise reductions of up to 30 percent.
Close by at a Springfield outlet, a chain belonging to number three
Spanish clothing retailer Cortofiel that sells contemporary clothes
aimed at young people, large signs announce a 50 percent discount on all
long-sleeved clothing items until the end of the month.
"These reductions are part of our strategy to face up to the economic
crisis. They are the sort of mid-season sales which are very effective,"
Ignacio Sierra, the corporate area director for Cortofiel, told AFP.
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