Twitter
Facebook
Linked In
RSS
Login or Register
New to InternetRetailing?
Register Now
Internet Retailing
You are in: > Home > Themes > Retail Resilience

This is your 1 complimentary article for this month

Become a member for unlimited and immediate access.


Register
Already a member? Log in here

Zara owner Inditex heads into profit on back of 74% ecommerce swing

Linked InTwitterFacebookeCard
Zara sees store sales drop, but online grows sharply
Zara sees store sales drop, but online grows sharply
Sharelines

Zara owner Inditex returns to profits on strong online sales, while store sales drop by a third

Inditex, the parent company of Zara, Bershka, Massimo Dutti and Pull & Bear, has seen profits return to the black for the past quarter, despite bricks and mortar sales continuing to plummet.

 

The Spanish group saw high street sales fall 31% across the three months to 31 July, despite 98% of its store footprint now open.

 

A swing of 74% in online sales across the six months ending at the same point compared to last year helped push the group to a €214 million (£197 million) net profit.

 

However, even online sales are slowing, the group warns, with store and online sales falling 11% between 1 August to 6 September against the same period last year.

 

Pablo Isla, executive chairman of Inditex told investors that trading in the current quarter has seen a “progressive return to normality”, with online sales continuing to grow sharply and store sales gradually recovering.

 

Isla also stressed that “the recovery and strong performance are due to the hard work, engagement and creativity of everyone in Inditex.

 

He said: “I am particularly pleased with our online sales growth, which demonstrates the critical importance of our integrated store and online platform strategy. This is a cornerstone of our unique business model with three key pillars flexibility, digital integration and sustainability. Day by day this combination is proving its solidness."

 

Inditex’s experience of online making up for falling store sales is part of a growing trend that has been identified and quantified by the Centre for Economic and Business Research (CEBR). It finds that half of retailers adopting a unified commerce or omnichannel approach saw their total number of transactions remain consistent during the pandemic – meaning that the reduction in sales volumes from stores was offset by online channels.

Linked InTwitterFacebookeCard

The InternetRetailing Newsletter

A curated update containing news analysis, reports, podcasts and opinion - completely free and delivered three times weekly

Become a Member

Create your own public-facing profile
Gain access to all Top500 research
Personalise your experience on IR.net
Internet Retailing
We are the magazine, portal and research source for European ecommerce and multichannel retail, hosting the board-level conversation for retailers, pureplays and brands across all of our platforms. Join the conversation.

© InternetRetailing Media

Latest Tweet

Internet Retailing
Tamebay
eDelivery
Twitter
Facebook
Linked In
Youtube
RSS
RSS
Youtube
Google
Linked In
Facebook
Twitter