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Logistics investment boosts Inditex growth


Posted on 22/03/2013 by Wayne Brophy FCILT

A major investment programme in logistical operations has helped Inditex stimulate its growth throughout the past year.

The company, which owns brands such as fashion retailer Zara, has put €1.4 billion (£1.19 billion) into boosting projects of this ilk in the past year. There has been a concerted focus on creating new aspects in its logistics division which included the modernisation of its eight distribution centres that are currently operating. One of the key elements was the expansion of its 70,000 sq m corporate headquarters in Spain which is in the construction phase presently with a completion date earmarked for the second quarter of 2013.

Officials explained that the move to extend the main base of the company would also have a knock-on effect with the rest of the logistics facilities in the rest of Spain. Inditex is aiming to adapt its distribution hubs in the likes of Galicia and Madrid. These cities are home to the firm's Arteixo and Meco facilities.

Speaking about the latest development from the company, the group said in a statement: "Another noteworthy project currently underway will install a hanging garment automated silo at the Zaragoza logistics centre, a system which is set for completion in the second half of 2013. Separately, the company in 2012 began implementing its plan to build a new distribution centre in Cabanillas (Guadalajara).”

Inditex has been involved in a major expansion programme over the past 12 months opening 482 stores in 64 different markets. It has entered into five previously untouched countries including Armenia, Bosnia-Herzegovina, Ecuador, Georgia and FYR Macedonia which pushed the company's total store numbers to 6,009.

There has been no word whether the rapid extension of these facilities will have an impact on the logistics jobs market but it does act as a marker of intent by the company to recognise the strong results that can come with serious investment within this division. It is set to not only benefit the company's interests, but rapid expansion can also stimulate growth in towns and cities.

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