Inditex will address ‘single-digit’ price increases due to the effects of inflation

Inditex will undertake selective “single-digit” price increases in the autumn-winter campaign, as it did in the spring-summer campaign”, in a context marked by the ukrainian war and inflationary pressures. This has been made clear by the director of Capital Markets of Inditex, Marcos López, who has reaffirmed, however, “stable pricing policy” of the company for the autumn-winter campaign.

“Despite having a stable pricing policy, when there is temporary shocks from inflationin certain markets what is done is to try to adjust prices”, he pointed out. In March, the company already anticipated that its intention to raise prices by an average of 2% in Spain and Portugal in the spring-summer campaign, although this increase would impact only a selection of products.

However, the CEO of Inditex, Oscar García Maceiras, stressed at that time that the company does not want to alter its business model of “high quality and reasonable prices”, so that the possible additional increases that the firm may consider will be “selective” and will depend, among other factors, on the commercial formats and products. In relation to the collection of ‘online’ returns, which Zara began in specific markets last fall, Inditex has stressed that the measure has been “extremely well accepted” and “has had no impact at all” on sales.

An increase in store returns

In fact, “two good effects” have been observed: the increase in store returns and the reduction of the period for return” by customers. “Even from the perspective of sustainability, consumers understand that it is a trend that will be implemented throughout the industry in the coming years,” they have pointed out from the firm. .

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