Majority of the businesses aren’t performing well because of the coronavirus outbreak, but there are some companies which are witnessing sales going up. The CEO of fashion Zara said recently that in April online sales of the company went up by 95%. The company said they are expecting this trend to be in future also because according to the company by the end of 2022 quarter of their total sales will be online. Even though the sales increased for one month, overall, the company booked a quarterly loss.
Sales for this quarter fell to £3.3 billion as compared to £5.9 billion in the previous year. In other words, the Spanish fashion brand booked more than £409 million of losses during this quarter. Since the lockdown happened, the selling trend has also changed because now people are more interested in digital purchase. The company executive said lockdown has impacted on previous fashion trends, and retailers are forced to change their behaviour because of the ongoing lockdown situation.
Zara is that fashion brand which is famous in Europe, but they were lagging behind in online sales. But, this lockdown has forced companies to focus more on online sales as compared to traditional selling through stores. Because of the surge in demand, Zara is facing the problem of shortage of stock. The inventory which could have been lying idle is facing the problem of scarcity. The inventory of the company fell by 10% in April. As a result of such an outstanding performance, shares of Zara went up by 2.3% in Madrid trading. Company’s executive said they are going to spend more than £900 million in upcoming years on centralising and digital platforms.