In the 2010s Inditex, the world’s largest fashion retailer, surged ahead of its rivals by keeping the bulk of its production close to Europe, its biggest market. That allowed the firm to keep inventories low and respond quickly to fashion trends. These days competition from Shein, a Chinese e-commerce firm, is squeezing much of the sector. But Inditex, whose brands include Zara and Bershka, is bucking the trend again. It has unified its online and shop-based operations better than its rivals thanks to clever radio-frequency trackers, an in-house digital platform and a group-wide inventory database.
Its nimbleness is paying off. During the second quarter of 2024 net profits climbed 9.6% year on year, while sales rose 7.3%. Analysts expect the strong performance to continue into autumn: interim results showed that sales rose 11% year on year between August 1st and September 8th.
|