7 hours ago | By Nigel Taylor
Mar 14, 2018
Inditex defies analysts’ expectations releasing strong sales for both in store and online channels boosting net profit by 7% to 3.37 billion euros in the past fiscal year ending on 31 January 2017. Online sales, now 10% of the total revenues, grew by 41%.
In an interview at CNBC this morning, our Retail Insight Director, Nivindya Sharma says “given the market context, Zara had a strong performance. Despite being late in the online game, the fact that 10% of sales are generated online is a good result when the company expected it to be at 6% by this time”. The full interview is available to watch here.
Nivindya continues: “In order to succeed in online retail today, you’ve got to be a tech leader and put data at the heart of your decisions. This is what Inditex has always done really well, historically – even before the rise of online retail”.
Our UK womenswear Barometer data shows that consumers shop online at Zara less than at online pure players like ASOS, or at retailers like Next that established their online presence earlier (online stated purchase frequency). However, the retailer is ahead of both Topshop and H&M.
Interestingly when it comes to stated online spend, Zara is only outperformed by Next with £54.27 and £61.48 average spend over the last three months and, importantly, spend online over time is uptrending for Zara, surpassing ASOS, Topshop and Next.
What does Zara need to work on to grow its online business even further? The online experience element of our Barometer survey show that Zara needs to improve on delivery options in addition to online navigation.
Zara is only one of the 300 fashion retailers we track in our daily consumer survey in the UK and the US. As part of our survey, we interview 150,000+ womenswear and menswear consumers annually. Get in touch if you want to know how your brand performs against your competitors and the whole market.
Know what’s next. Become a WGSN member today to benefit from our daily trend intelligence, retail analytics, consumer insights and bespoke consultancy services.