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

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The world’s largest clothing retailer, the Spanish company Inditex,  presented the results of the  first quarter. In the first quarter, which ended at the end of April, the company’s revenue, among whose brands Zara, Pull & Bear, Massimo Dutti, Bershka, Oysho, decreased by 44%, to € 3.3 billion. Also, for the first quarter Inditex reported a loss of € 409 million against a profit of € 736 million for the same period last year.

During the first quarter, 88% of Inditex stores around the world were closed for a while due to quarantine measures introduced by different countries. At the same time, the company reported an increase in online sales – by 50% for the quarter as a whole and by 95% in April.

Inditex also announced plans for a large-scale closure of stores – it intends to close 1–1.2 thousand of the 7.4 thousand stores that the company currently has, although at the same time it plans to open 450 new stores, so taking into account this reduction will be from 500 to 700 points.

Especially many stores will be closed in Europe and Asia. In addition, Inditex announced plans to increase online sales: if last year online accounted for 14% of all sales of the company, then by 2022 the share of online sales should reach 25%. In the next few years, the company will invest € 2.7 billion in various technological solutions and the promotion of online trading.

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