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Inditex, the owner of Zara, said online sales surged 95%in April as its stores were closed during the coronavirus lockdown in much of Europe.
The company stated it expected part of the shift to be long-term, with a quarter of sales anticipated to be online in 2022, up from 14%in 2019.
However, the firm scheduled its first-ever quarterly loss as sales overall dived.
Sales was up to EUR3.3 bn (₤ 2.9 bn) for the very first 3 months of the month, below EUR5.9 bn a year previously.
That caused a quarterly loss of EUR409 m for the Spanish firm, which also owns the Bershka and Pull & Bear brands.
” Lockdown is speeding up existing trends, forcing merchants to acknowledge the digital age has dawned,” stated Sophie Lund-Yates, from stockbroker Hargreaves Lansdown.
” The Zara owners were currently working towards improving their online capabilities however lockdown has actually introduced a new seriousness.”
She highlighted Zara’s success in handling its stock levels.
Inventory fell 10%in April, she said, “in stark contrast to the likes of M&S or Primark who have been lumbered with swollen piles of stock”.
The shares increased 2.3%in Madrid trading.
Cash-rich
Inditex stated it would invest EUR900 m a year for the next 3 years on big, centralised shops and its online platform. It will close more than 1,000 smaller sized stores at the same time.
It anticipates most stores to open by the end of the month, it said.
The firm has a big benefit over many High Street competitors, thanks to its money reserves.
It has EUR5.8 bn, compared to EUR6.7 bn last year.
source https://jobsearchtips.net/zara-owner-sees-online-sales-surge-95in-april/
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