Zara owner Inditex to close up to 1200 fashion stores around the world

Zara owner Inditex to close up to 1200 fashion stores around the world
  • Clock-gray 13:46
  • calendar-gray 12 June 2020

The owner of Zara is to close between 1,000 and 1,200 retail stores across the globe, outlining a plan to “reinforce all of its brands’ e-commerce capabilities”, APA reports citing the Independent.

Inditex, a Spanish multinational fashion group, operates more than 7,000 stores worldwide, owning brands including Zara, Zara Home, Massimo Dutti, Bershka, Pull and Bear and Oysho.

In March, the clothing company announced it would be closing 3,785 shops globally after the coronavirus pandemic caused sales to plunge.

Three months later, the firm has released a statement explaining how it plans to boost the online presence of its brands.

However, hundreds of stores will be closed in the process as part of these plans.

The company plans on giving “a definitive boost to certain brands’ online sales platforms”, in particular, the Bershka, Pull and Bear and Stradivarius shops located in China and Japan.

In Spain, larger stores will be opened as smaller shops are absorbed, while in the Americas and the rest of Europe, “the priority will be to consolidate the strategy driving full integration of the physical and digital worlds”.

 

During the first quarter of 2020, between 1 February and 30 April, Inditex saw sales fall by 44 per cent, while 88 per cent of its stores remained closed.

However, the firm also noted a 50 per cent increase in online sales during this period, “specifically increasing by 95 per cent year-on-year in April”.

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