Concurrently with the Spanish group efforts to turn to a digital-driven business model, Inditex’s young fashion retail chains have introduced changes in their commercial policy.
Inditex, on the search of a new formula for its young fashion chains. Bershka and Stradivarius are preparing to introduce changes in their strategy, as the Spanish fashion juggernaut focuses on a digital-driven business model. While Stradivarius readies to put an end to its menswear endeavours, Bershka is tying up with several third-party brands to broaden its offering.
Stradivarius announced the launch of a menswear collection in 2016, although the first range didn’t reach stores until February 2017. The rollout of Stradivarius Man began in secondary Spanish retail premises and was subsequently introduced in top-notch locations such as Portal de l'Àngel, in Barcelona, or Gran Vía, in Madrid. The men’s collection was traded abroad as well and the chain aimed to offer the range in up to 109 stores at the end of 2017.
A year after launching, Inditex-owned company has been studying the removal of menswear for several months, a move that will eventually take place next August, when the stores will begin the garments’ clearance.
Inditex introduced menswear at Stradivarius in early 2017
Stradivarius pulls back and puts an end to one of the most important diversification projects in recent years. The chain is Inditex’s fourth largest concept by turnover, with sales of 1.48 billion euros in fiscal 2017 and an EBIT of 225 million euros. Stradivarius boosted its retail network last year, opening twenty-three new stores and reaching 1,017 points of sale worldwide.
As Stradivarius refocuses on its main women business, Bershka is broadening its offering by following a collaboration strategy with premium fashion brands. Over the last few years, the chain has introduced capsule collections with various labels, and is negotiating with several firms to join the product line-up for the upcoming fall-winter season.
Bershka has already teamed up with Kappa, Converse and Reebok, among other brands
The firms with which Bershka has allied in recent years have a similar positioning and all of them are in vogue among teens globally. The Inditex chain has collaborated, for example, with Vans, Adidas, Reebok, Converse. In 2018, Bershka teamed up with Kappa as well.
With sales of 2.2 billion euros in 2017, Bershka is the second largest Inditex chain, only behind Zara. The brand had 1,098 stores at the end of fiscal 2017, a year in which it registered an ebit of 353 million euros.
In late 2017, Berhska renewed its high-executive team and changed its managing director. Antonio Flórez, until then head of Inditex’s Italian business, was appointed to lead Bershka after the departure of Marco Agnolin, who joined the ranks of Diesel.
Inditex ended a six-year transformation plan in 2017 to adapt to the new on- and offline retail environment. Since 2012, the company has carried out 1,046 closures, 2,994 openings, 1,241 store renovations and 907 extensions.
In parallel, the Network continued to gain importance in its business and, for the first time in its history, the company unveiled in 2017 the weight of its online sales, a channel that generated 2,534 million euros last year, 10% of your billing.
Inditex, which also owns retail chains such as Pull&Bear, Oysho, Uterqüe, Lefties and Zara Home, ended last fiscal year with a turnover of 25.3 billion euros, 12% more, and a net income of 3.3 billion euros, which represented an increase of 7% compared with 2016.