Inditex profit has jumped the first half of 2016. Much of this is due to new stores being opened and investment made online. Spanish company Inditex, owner of Zara and other brands, posted net earnings of €1.26 billion (£1.1 billion) in the half-year to end of July. This is up 8% on the same period in 2015. Sales in increased by 11% from €9.4 billion to €10.5 billion.
In addition to Zara, Inditex operates another 7 brands in 90 countries worldwide. Among these are Bershka, Massimo Dutti and Pull&Bear. During the 6-month period, the firm’s internet presence had been increased by 11 countries. This has helped Inditex profit. Also contributing is the fact that the firm’s brands are now available online to 40 countries.
Other technological advances include a mobile phone payment system being introduced to all Spanish stores. This innovation is to be extended to ‘other countries’ according to Chairman and chief executive Pablo Isla. Online apps will be included for its entire range of brands and the InWallet app for the whole group.
Mr. Isla stated that online and physical stores are now seamlessly connected, and that in addition to mobile payment, other technological advances will continue to develop. Inditex is committed to using modern technology to help expansion and improve customer satisfaction
Another benefit for Spanish company Inditex is the current steadily growing Spanish economy. Spain is responsible for around 20% of total Inditex sales. The Spanish clothing market overall increased by an average of 3% May to July.
During the first six months of the year, each of the Inditex brands increased its international presence. A total of 83 new stores were opened in 38 countries. Inditex profit, and the company’s performance during these six months, is better than that of competitors Next and H&M who have suffered below-forecast results this year – blamed largely on unseasonable weather.
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