The retail industry has taken a hammering this year, and we're only just going into March. But it isn't all doom and gloom. In fact, we're seeing a number of businesses that have used their competitors' downfall to their advantage and even managed to grow their profits.
Clothes retailer Primark, renowned for offering cheap fashion items, is one such business. The firm's parent company, Associated British Foods, is expecting sales to be up 23 per cent in the six months to 2nd March. Meanwhile, like-for-like sales are due to be up by seven per cent.
The improvements in profit margins are largely due to improved trading environments and lower cotton prices. But given that other fashion retailers have been showing some serious signs of distress, Primark's shrewd business approach must also have something to do with matters.
But perhaps the strongest example of success in the current climate is Zara. The firm is still doing incredibly well thanks to its unique approach to fast fashion. The business has been founded on the principal that fashions and tastes change almost daily and, as Loreta Garcia, head of Zara Woman's trends department, the company doesn't waste time in looking fashion shows but jumps straight to what consumers are discussing: “We never go to fashion shows. We track bloggers and listen to customers, but we change our opinions all the time. What seems great today, in two weeks is the worst idea ever.”
This approach has amassed Zara's founder, Amancio Ortega, a fortune in the region of $56 billion, making him among the top five richest men in the world. His retail empire has stores in 80 countries and works with revenues of nearly $20 billion.
Some 40 years ago, Ortega was folding shirts in his local store as a 14-year-old. Fast forward and he is the owner of one of the most successful retail ventures in the world, arguably all because he stuck to his principal of giving consumers what they want and giving it them before anyone else can.
As retail administrations continue to hit the headlines, it's refreshing to know that the right approach to the sector can still develop to a profitable business. 
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