In a conference with the analysts, president of Inditex Pablo Isla commented on the results of the last period, to then reveal the strategy starting from 2022.
Due to the pandemic, the group closed about 88% of its commercial network, recording a 44% drop in sales compared to the first quarter of the previous year. This means that the Iberian group had lost 409 million euros, compared to 736 million earned the previous year.
However, this loss does not deter the leaders of the conglomerate, who are preparing for a strategy to accelerate the recovery.
First of all, it should be noted that like many brands in the fashion sector, e-commerce has played a fundamental role in safeguarding liquidity and in any case ensuring revenue during the lockdown. Isla intends to further incentivize the digital channel, which is expected to generate 25% of sales in 2022.
In the plan presented at the conference, Isla said that about 1 billion euros will be allocated to e-commerce and 1.7 billion to support the digital platform in support of the stores. We will, therefore, see the closure of around 1200 stores, however, counterbalanced by the gross opening of 150 stores every year.
This reorganization will mainly concern small surface boutiques located in specific geographic areas. Part of the strategy also includes incentives for sustainability.
Meanwhile, Isla declares himself confident: “We have witnessed a gradual recovery in sales in all markets with the gradual reopening of the stores. We will not be slow to return to last year’s levels. […] We expect that most of our boutiques will be reopened by the end of June.”
Cover image credits: ©Massimo Dutti SS2020, Photography by Lachlan Bailey, model Andreea Diaconu