![]() And customers can now discover things online but have a multitude of fulfilment options. “Its USP is built around short and fast supply chains, being able to react to the market quickly and having that store presence to be able to offer really good experiences. Lim says given the vast sums invested over the last few years, online and digital are sure to be a critical part of Inditex's future strategy going forward and something which Ortega will prioritise: “The advantage Zara has over its competitors is being able to leverage value over its physical store estate, by bridging the physical and digital worlds together. This has been crucial, allowing it to join up its online and offline proposition.” “This came at exactly the right time in terms of the pandemic, so, rather than being on the back foot, it was fortunate and able to leverage the single inventory view that its new platform offered. “ invested hundreds of millions to boost its online proposition,” says Richard Lim, CEO of retail consultancy Retail Economics. Industry experts tell Drapers that consolidating and building on this digital success will be a key focus for Ortega in the coming months, particularly as retail spend continues to shift online. Online sales now account for 25.5% of the total, and are expected to reach 30% in 2024. In its latest results, for the year to 31 January 2022, revenue from online sales amounted to €7.5bn (£6.3bn) – up 14% from a year earlier and following growth of 77% in 2020. At that time, the company’s ecommerce sales totalled €2.5bn (£2bn), accounting for 10% of its total revenue. In March last year the group, which until that point had not disclosed detailed results for its brick-and-mortar and digital stores, reported the figures generated by its online channel for the first time. He continued this innovation with the launch of a "Store Mode" functionality online and in the app, which connects stores and digital platforms, rolling it out to all its global store portfolio in 2021. The strategy has been to develop a completely integrated, digital and sustainable network of stores across the group by 2020. This included an integrated stock management system, enabling it to fulfil online customer orders with store inventory. ![]() ![]() Outgoing chairman Pablo Isla has been widely credited with spearheading a successful digital transformation at the fashion group. Salter says this was bolstered by Zara’s performance, with its fast reaction to fashion trends continuing to drive front-of-mind appeal among shoppers, leading to high demand for its trend-led pieces after stores reopened following successive lockdowns. ![]()
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