Daily Management Review

Zara owner explains reluctance to close shops for online sales


Zara is the world leader in online shopping, but the company has no intention of closing its shops, said the head of Inditex Group, which owns the brand. In his view, the future of the industry lies in a hybrid approach that combines traditional retail and online services.

Zara does not intend to close its offline shops for online sales, Pablo Isla, head of the Inditex group, which owns the fashion brand, told the Financial Times.

According to the FT, Zara began accepting online orders in 2010. By 2019, their share of the brand's €28 billion revenue was only 14%. However, in 2020 it grew to 32% and orders made on the website and mobile app Zara brought about €1.2 billion. By the end of last year, the brand's revenue from online sales jumped 77%, which is more than three times the 22% growth of the global online market for clothing and footwear.

However, the future of the industry, according to Pablo Isla, lies in a hybrid approach that will combine traditional shops and online services. "Different business models can be successful in the same sector. But ours has a lot of potential and a long way to go. I absolutely don't believe in all this nonsense about the death of high street retail," said the Inditex chief.

One of the main reasons why Zara shops remain so important to the brand's development is that it is the best place to see which products are popular with customers, the company explained to the FT.

source: ft.com