Inditex Says Optimized Shopping Experience Boosted Sales 25%

Zara-parent and fast fashion giant Inditex reported that its sales in the first half of 2022 were up about 25% year over year and attributed this growth to the new ways in which it’s connecting with consumers.

“The results are explained by four factors, key to our performance,” Inditex CEO Oscar Garcia Maceiras said in an earnings release issued Wednesday (Sept. 14). “Our unique fashion proposition, an increasingly [optimized] shopping experience for our customers, our focus on sustainability, and the talent and commitment of our people.”

The company continues to invest in both physical stores and its online channel. As PYMNTS reported in June, Inditex plans to boost its global sales using what it calls a “fully integrated store and online model.”

Read more: Inditex Boosted By Zara Foot Traffic Increase, Unbowed on Online Sales Goals

In its presentation, Inditex said its online sales channel is growing at the anticipated pace and that online sales are expected to account for more than 30% of its total sales by 2024.

At the same time, in-store traffic and sales are growing and Inditex said that’s because its stores are differentiated from the competition.

To counter any supply chain issues that may arise in the second half, the company accelerated its acquisition of fall and winter inventory to ensure product availability.

On the sustainability front, Inditex is participating in a startup called CIRC that is developing technology to recycle products that are made of both polyester and cotton, converting them into new fibers.

Looking ahead, Inditex expects continued sales growth in the second half, adding that it will continue to invest in its physical stores, its online sales channel and its logistics platforms.

“The flexibility and responsiveness of the business in conjunction with in-season proximity sourcing allows a rapid reaction to fashion trends and allows us to enjoy a unique market proposition,” the company said in the earnings release. “Our business model has great growth potential going forward.”