Inditex’s digital transformation strategy has been set on fire, even more so, with the passing of the pandemic in the company. The president of Inditex, Pablo Isla, highlighted at the general shareholders’ meeting the importance of integrated inventory management of the physical store and on-line, a key factor in boosting internet sales. “Having this technology and these capabilities has been critical during periods of confinement and store closures, especially at a time when up to 88% of them were closed at the same time,” he stressed.
In 2020, marked by the onslaught of the pandemic, as Isla has insisted, the integrated management of inventories has reached 5,777 stores, which has allowed the distribution of 46 million orders from the store for an amount of 1,155 million euros. This has been a fundamental factor for the increase in digital sales, which in the first quarter maintained the growth rate of 2020 (+ 67%). “The company has made great strides in its strategic digital transformation and the outlook is positive. The results invite us to look to the future with optimism and solidity. We have a lot of capacity for growth ”, stated the president of Inditex.
At the meeting, held at its headquarters in Arteixo, the results for the 2020 financial year were approved, which closed with a profit of 1,106 million euros (almost 70% less than a year before) and the turnover reached 20,402 million (27 , 9% less). Likewise, the board of directors’ proposal to distribute a dividend of 0.70 euros per share was approved, of which half were already paid on May 3 (the remaining 0.35 cents per share will be distributed The 2nd of November).
Isla has also influenced the company’s powerful investment to carry out the digital transformation. Between 2020 and 2022, he recalled, the group will invest 2,700 million euros, of which 1,000 million will go to digitization and the remaining 1.7 billion to introduce the latest technologies in Inditex stores. In this context, the development of its own technological platform (Inditex Open Platform) stands out, allowing the firm to advance digitally by integrating all phases of the business model.
Advancement of the net zero emissions target
Isla’s intervention with shareholders, after analyzing the economic data for the last year and the first quarter of 2021, has focused on the sustainability objectives of Inditex (owner of Zara or Massimo Dutti, among others). He has explained the fulfillment of most of the challenges set and the advancement of the dates to meet some of the most ambitious objectives. For example, that of net zero emissions, which was set for 2050 and which the company has moved forward a decade this Tuesday, to 2040.
“Sustainability is a strategic pillar just like digitization and the integration of the physical and digital world”, highlighted the president of the firm. In addition, it announced the goal of using 100% renewable energy in 2022, advanced the goal of using more sustainable cotton to 2023 (until now it was set for 2025) and the goal of reducing water use by 25% throughout the chain. supply in 2025.
On the other hand, it maintains the objective of eliminating all single-use plastics for customers in 2023, as well as the recycling of 100% of waste in that same year. And by 2025, the goal remains for the polyester and linen it uses to be 100% recycled or sustainable.