// Zara owner Inditex will increase prices in its spring summer collection in the wake of rising costs
// The retail group’s profits more than doubled in 2021 as sales recovered to near pre-pandemic levels
Zara owner Inditex will hike prices across its brands as it grapples with rising cost inflation.
The price rises have been introduced for its spring/summer collection. The retail giant, which also owns Bershka, Pull & Bear, and Massimo Dutti, expects prices to rise by 2% in its domestic market of Spain but they may increase more internationally.
New Inditex chief executive Óscar García Maceiras said: “Price stability is important for our customers, but it is clear in those countries where we are experiencing significant currency depreciation or cost inflation we will need to work to protect our margins.
“This is why this year, and in a very selective way, we will be putting in price increases of mid-single digits. It is not something we will do across the board, it is something that will be very focused on certain ranges and types of products, and clearly the idea is to preserve our position in the market.”
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Inditex, which revealed today that profits had more than doubled in 2021 after sales almost recovered to post-pandemic levels, closed its 502 Russian stores this month in the wake of the country’s invasion of Ukraine.
Garcia Maceiras said that Inditex planned to re-open its stores in the countries.
“Our objective is to resume operations in Russia and Ukraine as soon as circumstances allow,” he said.
Russia and Ukraine account for around 5% of Inditex’s global sales.
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