Mango closed the month of October with online sales 5% higher than those registered in all of 2019, with which the company plans to close this year with a turnover of 800 million euros in this channel, 40% higher than last year, and reach 1,000 million in 2021.
This was explained by Mango’s Director of Online and Client, Elena Carasso, in a meeting with the media in which he took stock of the first 20 years of the company’s electronic commerce. This increase in online sales is due in large part to the almost 3 million new digital clients that the firm has added this year, 900,000 of which were added during the months of confinement, in which the turnover of this channel grew 50%.
However, this large increase in online sales does not compensate for everything that has been stopped selling in the physical channel, which has been affected by the closures and restrictions of the pandemic. In this sense, Carasso has assured that for the company it will be “quite difficult” to reach the sales record in 2019, where 2,374 million euros were billed, but they hope to reach them in 2021.
At the time of lockdown, with more than 90% of stores closed around the world, the drop in physical sales was “dramatic” and when they began to open behavior depended on the markets. Those in southern Europe and Turkey are finding it harder, while, for example, those in central Europe and the Nordics have recovered more quickly. In these markets there have even been weeks in which turnover has been above that of 2019, according to the directive.
He recalled that the two best months of the year are still missing, which include ‘Black Friday’ and the campaign of Christmas, and has ensured that it is difficult to make forecasts when the circumstances of closures and restrictions that the pandemic forces are changing every day and “because we are not sure when normality will really return.”
Carasso has not provided the percentage that online sales represent over total billing, but has explained that this year will obviously be much higher than in 2019, when it was 24%, taking into account that the pandemic forced to have stores closed two months.
The directive of Mango He believes that making decisions in a transitory circumstance, such as the pandemic, “would be a mistake”, although he has assured that they are resizing their stores based on what the customer demands. According to Carasso, retail, in general, has to be resized, because it has to adapt to the formats that best suit customers.
Mango had closed small stores to bet on large establishments where they could offer all their commercial offer, but the pandemic, according to Carassohas made them rethink many things, since, with the increase in teleworking, the stores that are close to where customers live are the ones that are “recovering better” now.
For this reason, it has said that it does not have “planned a massive closure of stores” or a reduction of square meters, “at least at the moment”, but, on the contrary, it hopes to grow in surface. “The company is not going to close stores, but is going to put them at points where customers expect us,” he insisted.
Mango, which has a physical presence in more than 100 countries and covers 83 markets online, has invested 150 million euros in the digital channel in the last 3 years. Mango’s new projects include the “hyper-personalization” of the experience, the use of new technology based on digital intelligence and the inclusion of omnichannel in franchises, with different levels of integration.