Inditex SA, the Spanish fashion retailer behind Zara, said it is relying on its mix of brands and markets, along with AI tools, to drive growth as it expands in the US and online 25 years after its 2001 IPO.

Inditex has stores in 98 countries, online operations in 214 markets, and eight brands including Massimo Dutti and Lefties, said CEO Óscar García Maceiras.

The company has also launched a virtual try-on feature that lets shoppers upload two photos to see how items fit, while Chairwoman Marta Ortega has backed limited collections with designers and celebrities, including a new collaboration with Bad Bunny.

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🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Virtual try-ons help protect profits from returns

Inditex is putting money into AI to cut returns, which reached $849.9 billion in U.S. merchandise in 2025 1. Online purchases come back at a 19.3% average rate, while fast fashion climbs to 28.9% 2. Size and fit doubts drive much of that volume, so virtual try-on aims at a common reason shoppers send items back 3. Handling one return costs $15–$25, enough to wipe out the profit on a low-priced fast fashion item 2. That return-cost squeeze matters for a high-volume, thin-margin model 2. Zara is Inditex’s largest brand and was among the first retailers to charge return fees on online orders. The move fits the company’s push to curb the hit to margins 1.

AI try-on is turning into a platform race

Inditex’s move fits a wider shift as virtual try-on becomes expected in online shopping, rather than a novelty. Google now places VTO in search results 1. Shopify, the ecommerce software company, has added Genlook’s virtual try-on app. Genlook makes AI shopping tools 1. Amazon, Adobe, and Google have built their own virtual try-on tools and teamed up with brands to roll them out 1. Retailers without these features risk falling behind as more online shoppers look for convenience and personalization when they browse 3. ……