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Inditex's omnichannel transformation

Inditex's omnichannel transformation 15-11-2022
The largest fashion retailer, INTIDEX (Zara, Massimo Dutti, Bershka, etc.) generated net sales of €20.4 billion in 2020. The weight of its online sales increased by 67%, from 14% of total sales to 32%.

In 2020, the Group closed 640 stores as part of its transformation strategy, launched in 2012 and accelerated by the pandemic. The strategy aimed for full integration of the stores and the online platform; as a result, its online presence is growing rapidly around the world, and its physical store channel is adapted to the omnichannel needs of each market.

What is it doing?

The group's strategic digital transformation is focused on omnichannel and business efficiency:

  • Since 2012, the group has invested more than €11 billion in technological and digital tools that integrate stores and the online platform, giving it greater efficiency and agility in stock management.
  • Inditex is restructuring its network, reducing the number of small stores and opening larger ones to offer an omnichannel experience.
  • Inventory management has been improved thanks to RFID and new digital tools, allowing shipping directly from any store, and many other omnichannel services, such as allowing the customer to browse online in the store of their choice, consult the inventory available in that store or access the store's services.

Our opinion:

Inditex demonstrates that all retailers, even the world's largest, must constantly readjust their business model with innovations and bold business decisions.

Its channel integration strategy and its huge investments in it are aimed at improving the customer brand experience as well as business efficiency.

Inditex's differentiation and strategic transformation towards a fully integrated, digital and sustainable business model makes it more efficient and ahead of the market.

Inditex's case is detailed, among others, in the report “Estrategias Canales de Distribución para Marcas y Retailers”, prepared by Ebeltoft Group and KISS Retail, which you can download here: