Inditex, parent company of Zara, reported a record year as shoppers returned in full force to its stores.
The Spanish global fashion giant’s sales rose 17.5% to 32.6 billion euros ($34.99 billion) in 2022 as sales exceeded pre-pandemic levels. Sales in the Americas up 20%. Net income rose 27%.
“The excellent results of 2022 show the strength of our business model and its ability to move towards the next level of development in which our fashion proposition, the experience of our customers, our commitment to sustainability and the talent of our teams will continue to be key,” stated Óscar García Maceiras, CEO.
The retailer said that, in 2022, traffic and store sales “increased markedly and continue to do so.” In 2022, in-store sales grew 23%.
Indixtex will focus on expanding Zara in the United States, which now ranks as the company’s second-biggest market behind Spain. From 2023 to 2025, Zara will undertake at least 30 projects (new stores, relocations and enlargements) in cities such as New York, Los Angeles, Miami, Chicago, Boston, Dallas, Austin and Las Vegas. New store openings will include The Grove in Los Angeles and The Forum in Las Vegas.
“We see significant long-term growth opportunities in the United States,” the company said.
Also in 2023, Inditex will introduce new security technology that will eliminate the need for hard tags.
“This new technology will allow a significant improvement in customer experience, facilitating interaction with our products and improving the purchasing process,” the company said. “The new system will be progressively implemented in all the concepts and will be the basis for us to continue deepening the digitalization of stores and their integration with online platforms in the coming years.”
At the end of fiscal year 2022, Inditex operated 5,815 stores.