The 2019 financial year was, predictably, the last with a consecutive record of income from Inditex. He coronavirus has slowed its sales growth, as a consequence of the closed stores. And it puts an end to an exercise where its volume of business in Spain has grown again despite the fact that the company has cut the number of establishments.
Inditex turned its strategy around several years ago, which included closing small stores and concentrating sales space in larger establishments. With them, together with online sales, their local income has risen. They are complementary channels, according to their executive president, Pablo IslaBecause there are customers who buy online, then they return garments in the store and, incidentally, they buy other items.
The data itself indicates that the Inditex network, in number, is smaller at the end of the last fiscal year, ended on January 31. On that date it had 1,580 establishments. Of these, 302 corresponded to Zara.
A year earlier, in his country of origin it reached 1,635. Of these, 304 corresponded to its pillar brand. Where have you reduced your network? According to the latest annual report, sent to the CNMV on Friday, the cut comes from Pull & Bear, which has grown from 210 to 198 stores in Spain in one year. Also from Bershka, which has gone from 201 to 191 establishments; and of Stradivarius, which reduces its network from 283 to 277, according to the aforementioned report.
INCOME BY SHOP, ONLINE INCLUDED
And their sales grow. In this last year, its income in Spain has advanced more than 4.5%. They stood at 4,766 million euros.
Thus, Its average income per store, including online, exceeds three million euros. Figure representing 8% growth compared to 2018. So, it added 1,635 stores in Spain and here it entered 4,557 million. Figures that also included its establishment in the network.
And that online store is the only one currently operating in Spain, as a result of the closure by Covid. Its impact, for the moment, is not predictable, but it will not change the business model of the Galician multinational.