It emerged earlier this week that Pablo Isla, chairman and chief executive of Inditex, was paid €10.4m (£9.5m) on the back of record results from the company. Drapers takes a look at some of the other developments highlighted in the Zara and Massimo Dutti owner’s annual report for the year to 31 January.
- Inditex plans to extend its staff profit-sharing plan for another two years
Inditex launched a profit-sharing initiative in 2015 for two years, distributing up to a ceiling of 2% of total profit to staff based at its stores, factories, logistics centres, brands and subsidiaries. This led to a payout of €79m among 84,000 employees in 50 countries. It now intends to run a second plan until 2019.
- The Brexit referendum has not had a “significant” impact on operations
Zara said the outcome of the vote was “an unexpected shock” that “sent the markets into a spin”. However, it said its impact on the group was “not significant”.
It explained: “The depreciation of the pound sterling as a result of the Brexit vote did not trigger a material increase in foreign currency risk, in view of the [behaviour] of the Group’s currency exposure portfolio due to its high level of diversification and the foreign currency risk management policy in place.”
- The number of Zara stores in the UK has dipped, but other shop counts have climbed
On 31 January, Zara operated 66 Zara stores in the UK, two fewer than last year. However, Massimo Dutti’s store count stands at 14, up by two, while Pull & Bear added one store to total eight. Stradivarius increased its numbers by three to amount to four stores. Bershka’s store count remained flat at five.
- Inditex expanded to five new markets with Zara store debuts during the year
Zara launched its first physical stores in Aruba, Nicaragua, New Zealand, Paraguay and Vietnam. It also entered 12 online markets in 2016: Bulgaria, Croatia, Slovakia, Slovenia, Estonia, Finland, Hungary, Latvia, Lithuania, Malta, the Czech Republic and Turkey.
It said Zara has launched online sales in Singapore, Malaysia, Thailand and Vietnam in 2017, and that India is expected to follow later this year.
- Inditex has extended its young talent programme to the UK and Germany
The programme, called Inditex Go, identifies talent at major universities in selected countries, offering career plans to students involving store management roles at its subsidiaries.
Inditex said it currently employs 144 people in different teams, working under a personalised career development plan that comprises a six-month in-store training period covering product, distribution centres, central services and country subsidiaries. The project was created in 2013.
- Zara is eliminating paper receipts in the UK and US
A new paperless system will also be gradually expanded to Inditex’s other brands and markets this year. Last September, the group rolled out a mobile payment system among all its brands, which is now operating in 15 countries, including the UK, US, Italy and France.
- Inditex is piloting self-service check-out
The group is testing out “quick” self-service check-out registers at selected Zara and Massimo Dutti stores, where items are automatically scanned and payments taken by credit card or with mobile phones.