Inditex continued to show its power in 2019, although this time rethinking its business plan. The Galician giant concluded the 2019 exercise with a distribution network consisting of 7,469 establishments, which means 21 points of sales less than at the end of 2018. This year, Amancio Ortegas company bet more on investing in renovations and applying new technologies than in opening new stores. Specifically, it allocated 1,200 million euros to this set-up of its network of retail.
The group explains that the investment has been destined to “digital and sustainable transformation of the company”, Which has involved a review of its commercial area and the incorporation of new technologies, in addition to other items such as the management of the purchase and relationship with suppliers from sustainability criteria.
Thus, Inditex has completed the implementation of RFID (radio frequency identification system) in chains such as Zara or Massimo Dutti, while the bulk of the chains this implementation will culminate throughout this year.
Regarding the renovations of the stores, Inditex has already changed the image of 98% of its points of sale, which in many cases has led to an expansion of spaces (such as the one opened by Zara in Paseo de Gracia).
In the last seven years, the average surface of the stores has grown by 29%. During 2019, the company opened 207 new stores, reformed 182 establishments (including 87 extensions) and closed or absorbed, in the group’s terminology, 328 smaller units.