Spanish apparel retailer Inditex will close around 1,200 stores, mainly smaller stores, across the world. This decision was taken at the wake of COVID-19 pandemic and rise in demand for online purchases. Except Zara, other brands like Bershka, Pull & Bear and Massimo Dutti, will face closure mostly in Asia and Europe.
While the closure will be concentrated in Asia and Europe, 107 Inditex stores in the UK are less likely to be significantly affected, reported The Guardian. Inditex, the biggest fashion group in the world, operates over 7,200 stores in 93 markets worldwide. Post the decision to close stores, the total store count will be around 6,000. As of 2019, Zara owner is the biggest fashion retailer in the world by revenue.
Inditex said it would absorb between 1,000 and 1,200 mainly smaller stores, with losses concentrated among older shops from brands other than Zara.
The decision to shut down stores, the Spanish retailer said, will not impact headcount as it will continue to remain stable. The company is planning to move the staff from their stores to online venture.
The move of the company aligns with the retailer’s long-term plan. Since September 2018, the company has been looking at selling Zara products and other products online.
Basically, the company has been looking at being present online in regions where it has no stores. By 2022, the company aspires to increase the share of online sales, to account for more than 25 per cent of the total sales. Meanwhile, larger stores will act as distribution hubs for online sales.
In April, the online sales witnessed a surged as stores were closed due to COVID-19-induced lockdown across the world.
