EP Insight, March 2026 | Inditex: Advancing Circular Fashion

The global fashion industry faces growing scrutiny for its environmental footprint – from resource-intensive production, to the short lifespan of many garments, and an estimated 92 million tons of textile waste each year.[1] The apparel industry’s traditional linear model – produce, sell, wear briefly, discard – is a major contributor. As regulators and consumers increasingly focus on sustainability, apparel companies are being challenged to take greater responsibility for the full lifecycle of their products, and are exploring new models to extend product life and reduce waste.

Spanish multinational clothing company, Inditex, the parent company of Zara, is enabling circular retail through Zara Pre-Owned, a platform where consumers can repair, donate, resell, or buy second-hand garments to extend their useful life. While Zara is often associated with the fast-fashion segment, an area frequently scrutinized for its environmental impacts, the company’s investment in circular initiatives highlights how large apparel retailers are beginning to rethink traditional models. Through the Pre-Owned platform, users can list second-hand Zara items for person-to-person sale, arrange shipping between buyers and sellers, or request collection services, helping products remain in circulation beyond the first purchase. Launched in 2022 and expanded to the United States in 2024, Zara Pre-Owned is now available in 16 European markets,[2] reflecting growing consumer interest in second-hand fashion and more resource-efficient consumption.

Complementing resale, Zara operates a clothing collection and donation program, allowing customers to deposit used garments, footwear, and accessories from any brand in dedicated in-store containers or via collection services. In 2024, Inditex collections yielded 7.2 million donated items,[3] which were subsequently sorted for reuse, charitable resale, or recycling. The clothing collection program recovered a total of 19,484 tonnes of garments and footwear in 2024, and worked with more than 91 local community organizations to ensure items in good condition support vulnerable populations or fund social projects,[4] diverting millions of garments from landfills and advancing a circular retail model globally.

Together, these initiatives illustrate how apparel retailers can extend the life of products and reduce waste. For Inditex, Pre-Owned and the clothing collection program are just part of a comprehensive sustainability strategy, spanning lower-impact materials, energy-efficient production, supply-chain transparency, and initiatives across sourcing, recycling, and product design. By embedding circularity across both products and operations, Inditex is demonstrating how a global retailer can manage environmental impacts at scale while positioning itself to meet evolving regulatory and consumer expectations.

If you are interested in reading more about corporate work to lower negative environmental impacts, please see other EP Insights from Terra Alpha here.

[1] UN Environment Programme – Unsustainable fashion and textiles in focus for International Day of Zero Waste 2025
[2] https://www.inditex.com/itxcomweb/es/en/sustainability
[3] Inditex – Consolidated Statement of Non-Financial Information 2024 and Sustainability Information 2024
[4] Inditex – Consolidated Statement of Non-Financial Information 2024 and Sustainability Information 2024
Photo: Inditex Media Gallery