Despite scaling back its physical presence and closing a fifth of its stores in China, Zara-owner Inditex more than doubled its pre-tax profits in China last year, demonstrating the success of its focus on online sales. The company’s strategy of optimizing selling space by prioritizing flagship outlets and increasing online sales has led to significant profit growth in China. With a shift towards a digital-first approach, Inditex’s profit before tax in China soared to $263.69 million (€241 million) for the 2023 financial year. This contrasts with Inditex’s performance in the US, where pre-tax profits fell by 7% last year, highlighting diverging market dynamics.