How Zara’s Spain-based owner sets itself apart from struggling competitors: While global retailers struggle this year, Inditex, the owner of Zara, has set itself apart from its competitors, reporting an 8% y-o-y increase in 1H2016 net earnings to EUR 1.26 bn. Sales fared even better than profits, rising by 16% when you set aside FX gains. Amancio Ortega, the chain’s retired chairman, is currently the richest person in Europe and the second-richest person in the world, frequently surpassing Bill Gates at the top on days when the company’s share price soars. So what’s the secret to the fast-fashion retailer’s success? Bloomberg Gadfly’s Andrea Felsted attributes it to three factors. The retailer is capable of responding quickly to changing fashions, particularly “in periods of hot or cold weather, where others are left flogging winter coats during a heat wave.” The fact that Inditex makes around 50% of its inventory close to its headquarters in Spain enables it to hedge against the impact of a stronger USD, unlike rival H&M which sources 80% of its USD-priced clothes from Asia. Moreover, Inditex has a strategy of reinvesting in its online business and renovating its stores, while keeping prices stable has enabled, while “most retailers focus too much on cutting costs, and not enough on innovation.”