Zara owner Inditex has introduced price rises across its different brands in line with cost inflation.

Massimo Dutti Valencia

The retail giant said prices have been hiked for its spring/summer collection for this year as the cost of raw materials impacted the business.

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.”

García Maceiras added that the business was not concerned by these changes as it is comfortable with its competitiveness in the sector and its inventory levels.

He said: “We also have a very healthy inventory position at this stage and the inventory is all of very high quality. We have accelerated our inventory flows to avoid any tensions in the supply chain, so we are well stocked for what is coming. We feel very comfortable.”

The Spanish fashion group, which owns Zara, Pull & Bear, Bershka and Massimo Dutti, said looking ahead, it expects “strong growth opportunities” including strengthening its integrated omnichannel model.

Online sales grew 14% over the period and are expected to represent 30% of the overall group revenues by 2024.

Inditex added that it is nearing the conclusion of its store optimisation plan, introducing “highly differentiated, fully integrated, digital and sustainable stores” through enlargements, relocations and new openings.

The group said it expected there to be neutral space growth for the full year in 2022 in terms of stores but it has also laid out plans to expand its Spanish headquarters.

The new five-storey building is designed to be self-sufficient with energy, thanks to three new wind turbines, and will make use of recycled materials.

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