Web sales success
Zara thus wants to focus on boosting online sales: while in the stores sales have fallen by 44% to 3.3 billion euros, online sales have in fact increased by 50% in the first quarter and in April they have jumped by 95%. According to analysts, the impact of the coronavirus on the group was severe but “temporary” and therefore an investment in e-commerce can help to recover the lost turnover with “traditional” sales in stores.
2.5 billion investments
The Spanish clothing group Inditex has already invested 2.5 billion euros to strengthen the online platform and said it will unlock another 2.7 billion investments, of which 1 billion to enhance e-commerce. Inditex predicts that online sales will represent 25% of its turnover in 2022 compared to 14% in 2019. Another 1.7 billion euros will be invested in shops, which will become mainly distribution centers and will serve to dispose of warehouse and for the withdrawal of online purchases.
Progressive recovery of sales
For 2020, President Pablo Isla predicts “a progressive recovery in sales”. In this way Inditex should be able to better cope with the reduced influx of public in the stores after the reopenings, unavoidable with the mandatory use of the masks, the confined entrance into the shops and the obligation of the safety distance between customers.