Published: 2023-06-22 ǀ Updated: 2023-07-04
Study the financial data for Inditex.
Inditex is the world's largest fast fashion group. Originating from the textile company Zara, the company began its global expansion in 1988. The company is involved in everything from designing to selling products.
Criticism of the working conditions and production methods of fast fashion continues. However, this does not detract from the success of the company. On the contrary: Inditex stores can be found on Fifth Avenue in New York, Piazza Duomo in Milan, Regent Street and Oxford Street in London, the Zeil in Frankfurt, Nanjing West Road in Shanghai, Shibuya in Tokyo, Nişantaşı in Istanbul, Myeong-dong in Seoul and Kärntner Strasse in Vienna.
|Headquarters||Arteixo, Galicia, Spain|
Óscar García Maceiras (CEO)
Marta Ortega (Chairwoman)
|Products||Clothing, shoes, fashion accessories, home textiles|
|Subsidiaries||Zara, Pull&Bear, Bershka, Massimo Dutti, Stradivarius, Oysho, Zara Home, Uterqüe, Lefties|
1975: Founding of the company Zara
Amancio Ortega, who had worked in the textile industry since 1963 as a garment maker for a shirt manufacturer, founded Zara with the opening of the first store in La Coruña, changing from a manufacturer to a seller of clothes. The company adopted the innovative concept of offering a wide range of products at low prices rather than durable clothing. The company quickly adopts innovative computer technology and the following year hires a professor, José María Castellano, to increase the company's computing power.
1984: Castellano becomes managing director of the company
Castellano, a computer specialist, is appointed by Ortega as the company's general manager.
1985: Summary of activities - Inditex is born
The entrepreneur Ortega groups his business activities under the name Inditex - an abbreviation for Industria de Diseño Textil S.A.
1988: First expansion abroad
With the opening of a Zara store in Porto, Inditex is expanding its activities abroad for the first time. Further stores follow in New York and Paris.
1990: Shoe collection for children
The company's own Tempe shoe collection is launches in the children's department of the Zara store. The company expands into France.
1991: Foundation of Pull & Bear and further expansion
After Zara, Ortega creates Pull & Bear, another brand specialized in casual men's clothing. In the same year, Inditex acquires a 65% stake in Massimo Dutti, which is increased to 100% in 1996.
1993: Foundation of Lefties
The name of the new company, Lefties, is derived from the term leftovers and is used to sell Zara clothes.
After opening a store in Mexico the previous year, Inditex opened stores in Greece, Belgium and Sweden this year. Malta, Cyprus, Norway and Israel followed in 1997.
1998: The brand Bershka is offered
The newly created Bershka brand opens its doors for the first time. It focuses on urban and trendy fashion.
The Iditex Group expands with subsidiaries in the United Kingdom, Turkey, Argentina, Venezuela, the Middle East and Japan.
1999: Acquisition of Stradivarius
Inditex acquires Stradivarius, a company specializing in young women's fashion. The group continues to expand in markets such as Canada, Germany, Poland, Saudi Arabia and several South American countries.
2000: Relocation of the headquarters
The Group headquarters will be relocated from La Coruña to nearby Arteixo.
2001: Foundation of an underwear chain and IPO
Inditex creates its own lingerie brand, Oysho. In the same year, the company went public, selling 26% of its shares to public investors. The value of the company at the time was 9 billion euros.
This year, branches will be opened in Italy, Luxembourg and Jordan.
2002: Opening of a second logistics center
A second European logistics center opens in Zaragoza.
2003: Launch of the Zara Home brand
The Zara Home brand is launched. Unlike the previous stores, it does not offer clothing, but bedding, cutlery, glassware and other home accessories. The company now has a global presence in Russia, Slovakia and Malaysia.
2004: Opening of the 2000th branch
The company's 2,000th store opens in Hong Kong. At this point, Inditex is already present in 56 countries around the world, having added Latvia, Hungary and Panama.
2005: Castellano steps down as CEO
Castellano is stepping down as CEO to focus on overseeing expansion plans. He is succeeded by Pablo Isla.
2006: Strong expansion and record sales
The Zara brand is the company's largest profit generator, thanks to its expansion with the opening of more than 200 stores in the current fiscal year.
Inditex is also this year's recipient of the Wharton Infosys Business Transformation Award, which recognizes the successful implementation of information technology in the manufacturing process, significantly reducing the time from initial design to product launch.
2007: The first online store is launched
Zara Home launches the Inditex Group's first online store. The year also saw the opening of two new logistics centers in Meco (Madrid) and Onzonilla (León).
2008: Uterque - a brand for accessories
The new subsidiary, Uterque, will specialize exclusively in accessories in its stores. The first stores are opened in Madrid (Calle Serrano), Barcelona (Passeig de Gràcia) and A Coruña.
In the same year, the 4,000th store is opened in Tokyo, in Ginza, one of the world's most important shopping streets. In total, Inditex opens 573 stores worldwide that year, with stores in 73 countries and doubling its size in four years. On the German market, Inditex is already represented by the brands Zara, Massimo Dutti, Zara Home and Bershka, and now Pull & Bear joins them.
2009: Growth continues
Inditex opens stores in Syria this year and begins distribution in China with chains such as Stradivarius, Bershka and Pull & Bear. A new distribution center is built in Palafolls, near Barcelona, to complement the existing logistics facilities in Tordera.
That year, with a total of 4,607 stores, Inditex had sales of 11.804 billion euros, a net profit of 1.3 billion euros and 92,301 employees.
2010: The 5,000 store
With the opening of stores in Bulgaria and Kazakhstan, the company is now represented in 77 countries. The 5,000th store is opened in the historic center of Rome.
Zara's sales reach 12.5 billion euros this year, even though the company only advertises in newspapers twice a year. But the year also saw the launch of online sales in many European countries, and the company continues to focus on attractive locations and celebrity testimonials.
2011: Expansion of the multichannel strategy
With Taiwan, Azerbaijan, Australia, South Africa and Peru, Zara expands its global presence by five more countries and now has 5,500 stores on five continents. To strengthen its multichannel strategy, Zara launches its online stores in the United States and Japan, as well as Pull and Bear, Massimo Dutti, Bershka, Stadivarius, Oysho and Uterqüe.
Pablo Isla Álvarez de Tejera is appointed President of the Inditex Group after founder Ortega announces his resignation as Vice President.
That same year, the first labor scandal breaks when it is revealed that a Brazilian supplier has been exploiting its workers for years, keeping them in slave-like conditions. The Brazilian Ministry of Labor imposes a fine of 1.4 million euros.
2012: 6,000 stores reached
With the opening of stores in Armenia, Bosnia-Herzegovina, Ecuador, Georgia and Macedonia, the company now has a network of 6,000 stores worldwide.
2013: Agreement on factory and building safety in Bangladesh
Following the collapse of a factory in Savar in 2013, Inditex, along with 37 other textile companies, sign the Bangladesh Factory and Building Safety Agreement.
2015: Jump in profits thanks to Zara and Oysho
Compared to the previous year, Inditex increased its sales by 16 percent. The Zara and Oysho brands were the main contributors to total sales of 17 billion euros and a profit of two billion euros. Between February and October alone, the company opened 230 new stores, bringing the total number of stores at the end of the year to 6,913.
2016: Expansion in online shopping
Inditex plans to open stores in Vietnam, New Zealand, Paraguay, Aruba and Nicaragua. The online business covers 28 stores at the beginning of the year and is expected to grow by 12 stores during the year.
2017: Conviction for plagiarism
A Brussels court convicts Zara Home of plagiarism - reportedly the first conviction of a fast retailer for unauthorized copying.
2018: Record figures
The company's sales grow by 3.2 percent year-on-year to 26.145 billion euros. Profits also rise by 2.3 percent to 3.444 billion euros. The company currently has 7,490 stores and 174,386 employees.
2019: World's largest fashion company in the world
In terms of sales, Inditex is now the largest fashion company in the world.
2020: Consequences of the Covid 19 pandemic
As a result of the pandemic, sales in the last quarter of 2020 fall 18% from the previous year to USD 1.85 billion. The stock price also falls by about 12% for the year, and the number of stores and employees declines.
2021: Change of CEOs
In December, Óscar García Maceira replaces former CEO Pablo Isla Álvarez de Tejera. The company announces the closure of all its sites in Venezuela, following an agreement with local partner Phoenix World Trade.
2022: Effects of the Ukraine war
Amancio Ortega's daughter Mara becomes CEO in April. The Kiddy's Class brand, which has been operating outside Spain under the name Skhuaban since 2006, is merged with the Zara brand this year.
Following the Russian war of aggression, Inditex closes all 500 of its stores in Russia, previously the company's second largest market after Spain. Despite the closure of a total of 5,815 stores - a 22 percent decrease compared to 2018 - sales increase by about 15 percent compared to 2019, to 32.569 billion euros, as the share of online sales increases from 12 to 22.4 percent. The profit is 4.13 billion euros. Zara generates more than two-thirds of that, and more than 60 percent of it in European markets. Forbes lists the company as the 763rd best employer in the world and the 258th most female-friendly company in the retail sector.
2023: Sale of Inditex subsidiary Novaya Moda
Inditex had already announced the sale of its Russian subsidiary Novaya Moda to the Dubai-based Daher Group in 2022. In March this year, the transfer was approved by the Russian authorities, and from April, 245 stores will be reopened and the existing workforce will be retained.
|Brand||Number of branches||Year established||Market|
|Zara||1939||1975||Clothing for women, men, children|
|Pull & Bear||964||1991||Casual wear for young people|
|Massimo Dutti||682||1991 (adopted)||Clothing and accessories for people of the world|
|Bershka||971||1998||Urbaan style for young people|
|Stradivarius||915||1999 (adopted)||Casual and feminie clothes for young women|
|Oysho||556||2001||Underwear, lounge wear, fitness and swimwear|
|Zara Home||482||2003||Home textiles and decoration|
|Uterque||82 (closed)||2008||High quality fashion accessories at attractive prices|