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Zara Is Slowing Down Store Openings to Focus on Online Sales

Photo: Kay-Paris Fernandes/Getty Images

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Zara is going to pull back on opening stores this year and focus on online sales. Reuters reports that fast fashion giant is slowing the pace of store openings for 2016, after opening 330 stores last year in 56 markets. Zara currently has 7,000 stores worldwide.

Zara revealed the news in its earning call, and noted that the average spend per customer online was higher than what is spent in stores. The brand is focusing on a seamless shopping experience between its website and its stores.

The stores that Zara will focus on opening this year will be flagships, like the expansive new Soho outpost in New York that just opened last week. It's Zara's first store to offer "smart dressing rooms," a feature the brand wants to roll out across the globe. Each dressing room in the Soho flagship has its own touch screen, which shoppers use to find different sizes or colors for each item, or ping sales associates for assistance.