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Delhi News Daily > Blog > Fashion > Zara India banks on tech-driven expansion amid sluggish sales growth – Delhi News Daily
Fashion

Zara India banks on tech-driven expansion amid sluggish sales growth – Delhi News Daily

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Last updated: August 12, 2025 9:24 am
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Tech-first store formatsGlobal investment driving local agilityMarginal sales rise, profit jumpsJoin the community of 2M+ industry professionals.Subscribe to Newsletter to get latest insights & analysis in your inbox.All about ETRetail industry right on your smartphone!

New Delhi: Spanish fashion retailer Zara, part of the Inditex Group, is sharpening its focus on the Indian market with new store openings, refurbishments, and the rollout of advanced in-store technologies, as it seeks to strengthen its omnichannel presence in the country, it shared with ETRetail.

“As of June 2025, Zara has 22 stores in India and its own online platform. We continue to see great opportunities in India, and the importance of the market becomes clear considering the latest projects in the country,” the Inditex press office said.

The retailer opened new outlets in Pune’s Mall of the Millennium in August 2024 and Bengaluru’s Phoenix Mall in September 2024, and plans to reopen an enlarged and refurbished store in New Delhi’s Pacific Mall by the end of 2025.

Tech-first store formats

In Bengaluru, Zara introduced features such as self-checkout with cash options, fitting room reservations, two-hour in-store pickup for online orders, product location via app, and dedicated return counters for online and offline purchases.

The company said its commercial model is “based on constant listening of our customers’ requests and analyzing retail habits, in order to properly respond to their demands through large, attractive and efficient stores that fit with the most innovative technological tools.”

Global investment driving local agility

Inditex, Zara’s parent company, is investing €1.8 billion globally in 2025 towards technological integration, online platform upgrades, and commercial space optimisation. Its logistics hubs in Spain, Portugal, Morocco, and Türkiye enable deliveries to Indian stores twice weekly, supporting faster inventory turnover.The group operates online in over 200 markets and physical stores in over 90 markets, supported by a supply chain spanning 50 countries, including India.

Marginal sales rise, profit jumps

In FY25, Inditex Trent Retail India reported revenue from operations of Rs 2,782 crore, a marginal 0.4% year-on-year rise, while net profit increased 23% to Rs 299 crore.

The slowdown in sales growth comes as global and homegrown players, including H&M, Uniqlo, Mango, and Reliance-backed brands, intensify their push in India’s premium fast-fashion segment. Analysts say sharper pricing, deeper regional penetration, and e-commerce-led launches are heightening pressure on Zara to maintain its market position.

  • Published On Aug 12, 2025 at 01:56 PM IST

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