Inditex, the Spanish business that owns Zara, Stradivarius and Massimo Dutti, is investing €2.7bn in expansion.
In Brief:
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€1bn of the capital will boost its ecommerce operations.
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It aims to get more than 25% of its sales online by 2022.
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The rest of the finance will develop its stores.
What does this mean?
Inditex recorded its first quarterly loss in 20 years recently due to Covid-19. However, it saw ecommerce rise 50% in the first quarter of this year as more than 6,000 of its stores were forced to close so its losses were somewhat mitigated by its ecommerce function. Last year, it got 14% of its total revenue from online sources so it intends to focus heavily on boosting this segment.
