All merchandise offered at fashion retailer Zara's high street stores will be available on the Internet (www.zara.com) starting tomorrow, 2 September, to online shoppers in six countries: France, Germany, Italy, Portugal, Spain and United Kingdom. The company in the coming months plans to extend its online store to other markets in which the Inditex Group has stores.

Inditex Deputy Chairman and CEO Pablo Isla underscored "the strategic significance of this new commercial initiative, which is in keeping with our ongoing effort: to offer our customers the best service possible. Internet and the world of social networking are indispensable tools and extraordinary channels for communication, and fit perfectly with our Group's philosophy".

Prices and payment systems

The prices on merchandise offered through the online store are identical to those found in our stores, and shoppers can pay for their items with the payment methods used most frequently for online transactions: credit cards (Visa, MasterCard and American Express), debit cards (Visa Electron) and PayPal.  

Deliveries

Customers may select a Zara store for pickup, in which case delivery is free of charge. Otherwise, customers may choose either standard home delivery or express home delivery, in which case goods will arrive within a maximum of 48 hours. Merchandise will be shipped in an environmentally-friendly package customised for each delivery, safeguarding the items.

Free returns and exchanges

The return and exchange policy is identical to that used in stores, with returns and exchanges allowed within 30 days of original purchase, and customers may choose to return goods for refund or exchange via a home pickup service or at any Zara store, always free of charge.

Users of www.zara.com can also call a customer service telephone number in each country in which online shopping is available, and will have access to a dedicated email contact to resolve any queries arising from online shopping. In addition, customers have a chat service during working hours, through which they can solve doubts or even be driven directly to the pages they wish in the online store.

Ease of use

The www.zara.com website is designed to offer an online shopping experience noteworthy for its simplicity. Shoppers can filter their search for garments and other merchandise by many criteria -type of garment, colours, sizes, prices- and can search for specific products by reference number, description, garment family, etc. Customers can view products in precise detail from different angles and use a SuperZoom feature to get an exceptional close-up look at the details of each item, with the image expanding to a full-screen display.

The shopping basket can be viewed at any time during the session, so that customers can immediately review their selection of garments. If customers choose to have their items shipped to a Zara location, they can use a quick and easy-to-use search tool or a GPS system that will automatically provide the location of the nearest Zara stores. 

In addition, the website features a wealth of visual content showcasing the Zara collection, including campaign photographs, lookbooks, videos, etc., to give customers a wide-ranging look at the full range of fashion offered by the retailer, and this content can also be shared across different social networks.  Users can also sign up to receive the Zara newsletter for updates on the hottest trends and the latest news in fashion.

For shoppers' convenience, the www.zara.com website is designed to adapt to any of the web browsers currently in the market. Additionally, in the case of Iphone and Ipad, applications will soon be available which will enable customers to purchase goods through these devices.  

Inditex has operated in Germany since 1999 through its commercial concepts Zara and Massimo Dutti, and today has a total of 72 stores in more than 40 German cities.

The Inditex business model is based on a multi-concept strategy, and it now operates stores under eight brands. Thanks to the positive performance of the German market, Inditex is currently reviewing the most effective approach for the introduction of other Inditex brands. 
 
Zara.com, Zara’s online store, will launch in Germany on 2 September.

Staff recruitment has been incumbent on COGAMI, which is familiar with the labour requirements of disabled people. The store staff has undergone Inditex’s store staff training process with excellent results. Massimo Dutti, with a long experience in its ‘for&from’ store in Allariz, has assisted Tempe both in training activities, and in the design of the stores, a process encompassing different activities aimed at improving the accessibility to the store and at facilitating the employees’s work. Thus, the doors are of a special dimension to allow the entrance of people in wheelchairs; the store has lavatories for disabled people and the labelling has been designed with a code of colours and geometric shapes to enable the distinction between masculine and feminine products to help the staff.

Located in rúa Fonteiriña, opposite Massimo Dutti’s ‘for&from’ store, this new store is part of the network of urban outlets promoted by Allariz Town Hall to foster commerce within its historical centre of town. The Allariz Town Hall has shown its full cooperation with the project, speeding up the required formalities to open the store.  The number of visitors that the town receives every year, the excellent results achieved by the Massimo Dutti store already opened there and the sale of products from the Inditex formats at affordable prices ensure that the store gets enough circulation to meet the goals of the project, since in addition to fostering the entry of vulnerable sectors into the labour market, it shows that these are feasible business projects.

‘For&from’ Project: eight years experience

‘For&from’ project began in 2001, with the first contacts between Fundació Molí d’en Puigvert and Massimo Dutti, a format of the Inditex Group located in Tordera (Barcelona). Seeking to explore new formulas for the social and labour integration of vulnerable groups and individuals who find it hard to get a job, a Massimo Dutti store was launched on 28 April 2002 in Palafolls that employs people with severe mental disorders. The achievements of this store are visible in the social and labour integration of its staff.  From a medical perspective, significant improvement has been achieved as regards the health of such workers. In the year 2009, the first employee of a ‘for&from’ store joined the staff of a regular Massimo Dutti outlet, this being the final goal of the whole project.

In November 2007, the project took a step forward, with the launching in Allariz of a second Massimo Dutti store linked to the ‘for&from’ project. The staff of this store is made up of physically disabled people. Additionally, further goals of the project were met, the store having being designed in such a manner as to make it a hallmark as regards accessibility and barrier-freedom. The Confederación Galega de Persoas con Discapacidade is Inditex’s partner in this store.

Finally in August 2008, Inditex and the Fundació Molí d’en Puigvert opened a new store in Palafolls, of Bershka format, that also employs people with severe mental disorders. As provided in the Corporate Social Responsibility Report, these three stores have an aggregate staff of 14 employees and their net sales reached some two million euros in FY2009.

At the Annual General Meeting held today at the Group’s headquarters in Arteixo (A Coruña, Spain), the Company’s shareholders approved the 2009 financial statements and the distribution of a dividend of €1.20 per share. Shareholders already received a before-tax interim dividend of €0.60 per share on 3 May 2010. The final dividend of €0.60 per share will be payable from 2 November 2010. The total dividend payout from 2009 profits comes to €748 million.

Pablo Isla, Deputy Chairman and CEO of Inditex, highlighted the company’s satisfactory sales performance in 2009, with sales at constant exchange rates climbing 9% to €11,084 million. Net income at Inditex rose 5% to €1,314 million.

In 2009 the Group opened 343 new stores, 98% of which in international markets, adding 167,819m2 of new retail surface area to bring the total at 31 January 2010 to 2,348,708m2. Last year Inditex opened its first stores in Syria while in the early months of 2010 it has entered the Kazakhstan, Bulgarian and Indian markets, bringing the total number of markets in which the Group is present to 77. The Company plans to open its first stores in Australia and South Africa in 2011.

‘Sustainable Inditex, 2011-2015’

In his speech to the Company’s shareholders, Pablo Isla unveiled the new environmental program, ‘Sustainable Inditex, 2011-2015’. Following the culmination of the 2007-2010 Plan, the new initiative is designed to consolidate and increase environmental standards, guided by ambitious targets in terms of cutting direct carbon emissions as well as those deriving from industrial supplier activity.

The widespread roll-out of the eco-efficient store hit several milestones in 2009, including the registration of LEED certification for the Zara and Zara Home store in Portal de l’Àngel (Barcelona), the first of its kind in Europe, the Class A energy efficiency rating awarded to the Massimo Dutti store located on the Diagonal (Barcelona) and the registration of Breeam certification for the Oysho store in the Rivoli district of Paris.

Inditex plans to inaugurate another store in Rome (on Via del Corso) that will apply for the highest level of LEED certification in 2010. Under the scope of the new plan it also plans to introduce more stringent eco-efficient standards for lighting, climatisation, water consumption, material usage, recycling and waste management on all new builds and store refurbishment projects. With regards to logistics front, the new program calls for further optimisation of distribution routes, the addition of more fuel-efficient vehicles and the reduction of logistics packaging materials.

Social responsibility

Touching upon Inditex’ corporate social responsibility record, Pablo Isla outlined the policy framework and the tools required to implement strategy, emphasising the implementation of the Code of Conduct for Manufacturers and External Workshops. Inditex had 1,237 suppliers at the end of 2009 and carried out a total of 1,302 social audits during that year.

Inditex’ CEO also referred to the achievements under the scope of its for&from workplace integration initiative and to the emergency relief programs put into action in 2009 in Indonesia and Haiti.

]]> Tue, 13 Jul 2010 14:10:29 +0200 http://www.inditex.com/en/press/other_news/extend/00000795 http://www.inditex.com/en/press/other_news/extend/00000795 * Store sales in local currencies increased by 13% between 1 February and 7 June * At the end of the first quarter, the Group had more than 4,700 stores in 76 countries Inditex net sales totalled 2,665 million Euros in the first quarter (1 February to 30 April) of its fiscal year 2010, 14% higher than the same period a year earlier.

Net income amounted to 301 million euros, an increase of 63% from the same period in 2009. The company’s gross profit rose by 20%, to 1,598 million euros, leaving the gross margin at 59.9% of sales. 

Inditex opened 98 stores in 29 countries in the first quarter of 2010, bringing its total to 4,705 in 76 countries as of 30 April 2010. Its workforce grew from 88,924 employees in the first quarter of 2009 to the current 93,779 employees.

Following the end of the first quarter of 2010, Inditex entered in India, bringing to 77 the number of countries in which the Group is present. The company opened its first Indian store in Delhi's CityWalk shopping centre on 28 May, and plans to launch three more locations, one in Mumbai and two more in Delhi in 2010.

Key figures (first quarter 2010)

(millions of euros)	1Q2010	1Q2009	%change 10/09
Net sales	2,665	2,338	14%
Gross profit Gross margin	1,598 59.9%	1,331 56.9%	20%
EBITDA	560	395	42%
EBIT	405	249	63%
Net income	301	184	63%

Start of Second Quarter
Store sales in local currencies have increased by 13% from 1 February to 7 June, 2010.

Zara online store
Zara will begin online sales on 2 September, 2010 in France, Germany, Italy, Portugal, Spain, and the United Kingdom. The online service will be accessible from conventional Internet access networks, smartphones and tablet devices. 

Other agreements
The Board of Directors of Inditex will propose to the Annual General Meeting the appointments of Nils S. Andersen and Emilio Saracho to the Board, substituting José Luis Vázquez Mariño and Antonio Abril Abadín.

Nils Smedegaard Andersen (b. 1958) is a partner and Group Chief Executive Officer of the Danish company A.P. Moller–Maersk, the world’s largest container shipping company and the No. 3 port operator worldwide, and also involved in a wide range of activities in the energy, logistics and retail industries. The firm has more than 115,000 employees and operates in some 130 countries. Before joining Moller–Maersk, Mr. Andersen held the position of Chief Executive Officer of Carslberg. 

Emilio Saracho Rodríguez de Torres (b. 1955) is currently the head of Investment Banking Coverage for Europe, the Middle East and Africa, and co-chair of Investment Bank at EMEA in JP Morgan. He is also a member of the Global Investment Bank Operating Committee and a member of JP Morgan Chase Executive Committee. He was formerly the chairman of JPMorgan in Spain and Portugal and Chief Executive Officer of JPMorgan‘s Private Bank in Europe, Middle East and Africa.

Antonio Abril Abadín asked the Board to accept his resignation as a Board member, to continue performing his duties as General Secretary and Secretary of the Board in accordance with the best international Corporate Governance practices. 

The inaugural Zara in Delhi consists of a 1,800-square-meter space displaying the retailer's latest collections across all of its departments (Woman, Basic, TRF, Kids and Man). Zara will launch a Mumbai location of similar size in the Palladium Mall shopping centre, one of the busiest shopping destinations in India’s most populous city. The second Zara outlet in Delhi will welcome customers at the DLF Promenade Vasant Kunj mall.

Strategic market

Zara’s arrival in India -- the world's second most populous country, with 1.1 billion inhabitants -- represents a new milestone in the Inditex Group's expansion in Asia, a region in which it already had a very sizeable footprint. After opening its first Asian stores in Japan in 1999, establishments followed in other Southeast Asian countries – Singapore, Malaysia, Indonesia, Thailand and the Philippines – in addition to Hong Kong (2004), mainland China (2006) and South Korea (2008). For its expansion into India, Inditex formed a joint venture with the Tata Group, one of the country’s top industrial conglomerates. 

India’s economy has grown quickly in recent years, and the country has a large population of shoppers who are keen on fashion and up to date on international trends. The country has a dozen cities whose populations each exceed three million people, and the Indian market promises substantial growth potential for Zara’s fashion offering.

International expansion

The growth of the Inditex Group’s retail presence in Asia in recent years, one of the cornerstones of its expansion strategy, means that the region now accounts for 12% of Group sales, with Inditex stores tempting shoppers in Asia's largest cities. This expansion is founded on the growth of the Group brands in the region. In addition to Zara, consumers in Asia can find Pull and Bear, Massimo Dutti, Bershka and Stradivarius stores. In accordance with the company’s multi-format strategy, by the end of 2009 the aforementioned five formats also had stores in China.

Following the launch of its first Turkish Uterqüe locations, Inditex now has stores in Turkey under all of its retail formats. Turkey is a very important market for the Group because of the experience the company has gained since it first opened stores there in 1998, the Group's sizable retail presence -- 109 stores among Inditex’s eight concepts – and the warm welcome shoppers in Turkey have given the Inditex approach to fashion. This response has prompted the Group to expand into many Turkish cities: in addition to their Istanbul locations, Inditex concepts welcome customers in Ankara, Izmir, Adana, Antalya, Bursa, Eskisehir and Mersin.

Uterqüe

Uterqüe, launched in July 2008, is Inditex’s newest concept. It currently has 64 stores and has rapidly expanded to 11 countries. Uterqüe sells a wide range of fashion accessories (handbags, footwear and leather goods) made of the highest quality materials, in addition to jewellery and a carefully chosen range of fabric and leather garments. All merchandise is created by the Uterqüe design team, who work at the central offices in Arteixo, A Coruña, Spain.

The Uterqüe store design takes its inspiration from the look of old English libraries, with wood furnishings and carefully placed lighting fixtures used to create a warm and welcoming atmosphere. Environmental concerns are incorporated into both store design and merchandise: recyclable materials are used and stores make responsible use of energy.

The Inditex Group’s net sales rose by 7% in its 2009 fiscal year (1 February 2009 to 31 January 2010) from a year earlier, to 11,084 million euros. In local currencies, net sales rose 9% from 2008. The Group maintained its like-for-like sales in FY2009, demonstrating the flexibility of its business model.

Net income amounted to 1,314 million euros, vs. 1,253 million euros a year earlier, an increase of 5%. 

Key figures

Financial figures              (in million euros)	2009	2008	09/08
Net sales	11,084	10,407	7%
Net sales outside of Spain	68%	66%
Gross profit Gross margin	6,328 57.1%	5,914 56.8%	7% 27 bp
EBITDA EBITDA margin	2,374 21.4%	2,187 21.0%	9%
EBIT EBIT margin	1,729 15.6%	1,609 15.5%	7%
Net income Net income margin	1,314 11.9%	1,253 12.0%	5%

Expansion  

Inditex in 2009 registered 343 net openings, bringing the Group's retail network to 4,607 stores in 74 countries as of 31 January 2010. 

In keeping with the company’s strategy, 98% of new stores were in international markets. Inditex opened stores in 46 countries in 2009, expanding its retail footprint across all geographic regions, particularly Europe and Asia. 

The Group increased its retail network in all of Europe's major markets, with noteworthy growth in countries such as Russia (37 new stores) and Poland (34). In Asia, Inditex continued its strategic push into the region’s top three markets, which posted significant growth, with 41 new stores in China, 12 in South Korea and 10 in Japan.

Syria in 2009 became the latest new market to land on the Inditex global store map, with openings by Zara, Pull and Bear, Massimo Dutti, Bershka and Stradivarius.

Highlights among store openings in 2009 were a Zara store in Tokyo's Shibuya neighbourhood, which brought the number of Zara stores in Japan to 50; a flagship Zara on Chicago's Michigan Avenue —within the Magnificent Mile— and a Zara store on Beijing’s Wangfujing Street, one of the most famous shopping streets in all of Mainland China.

Other flagship stores launched in 2009 include a Pull and Bear on London’s Oxford Street; a Bershka on Saint Petersburg’s Nevsky Prospekt; Stradivarius’ store No. 500 in Athens' Kolonaki shopping area; and the first Massimo Dutti establishment in Beijing, in the Solana shopping district.

Worthy of particular note is a new Zara and Zara Home store in Barcelona’s Portal de l’Angel, the first in Europe to obtain LEED environmental certification, which puts the Group at the cutting edge of the progress of research into eco–efficient store environments as part of its Environmental Strategic Plan. The result of this project is a store that consumes 30% less energy, saves 50% more water and emits 150 tonnes less CO2 per year than a conventional location.

The goal of the agreement is to promote the strategic positioning of UDC through activities associated to social responsibility, with the help of the experience gained by Inditex in this field.

Among the scheduled activities are: conducting research and studies; organising training activities and meetings with experts; exchanging information, knowledge and experiences; or, entering into agreements with other universities, institutions or companies, as well as the setting in train of specific programs on social action and environmental sustainability.

Both Inditex and UDC stress the special significance and the strategic relevance of Corporate Social Responsibility both for the corporate world and the society in general, and, specifically for the University. UDC wishes to delve deeper in this strategy by implementing its own social responsibility model allowing it to take a step forward in its transparency policy, management, ethical values and social and environmental commitment.

Further to the entry of Uterqüe into the Russian market, all the fashion concepts of Inditex have stores in the country, one of the most relevant markets for the Group, considering the relevant weight of retailers and the warm welcome to the fashion offers of each format. Inditex launched its first store in Russia in 2003. The Group has currently 139 stores in some of the major cities in the country.

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