Fast Fashion Brand ZARA Parent Company Announced The Closure Of 1,200 Stores!

Date:Sep 30, 2020

Recently, Inditex, the parent company of fast fashion brand ZARA, released its fiscal 2020 semi-annual report as of July 31. The report shows that in the first half of the year, Inditex Group had a net loss of 195 million euros. As early as its first quarter financial report, it revealed that it plans to close 1,000 to 1,200 stores worldwide in 2021, and the stores to be closed will be mainly concentrated in Asia and Europe. area.

The reporter searched and found that after announcing the plan to close more than a thousand stores, Inditex Group vigorously launched online business. In the fiscal 2020 semi-annual report, Inditex Group emphasized that e-commerce revenue in the first half of the year recorded a strong growth of 74%, and inventory decreased by 19% year-on-year.

In response, it was a small shop that was closed

The reporter interviewed the PR Department of Inditex China about the trend of online customs.

Relevant person in charge told reporters that Inditex plans to maintain the total number of global stores at 6,700 to 6,900 stores with larger area and higher quality, including 450 new stores, which are equipped with the most advanced integration technology. "For example, we will open a new ZARA Beijing Wangfujing flagship store in China, which is not only the largest ZARA store in Asia, but also the most technologically advanced store in the world."

"At the same time, we will absorb 1,000 to 1,200 small stores, these stores account for 5% to 6% of total sales, and because the location is not ideal, they cannot provide customers with a new shopping experience." The person in charge said these Most of the small shops that will be closed are relatively old, mainly other brand stores under the group except ZARA. Next, Inditex plans to strengthen the investment and development of online platforms for some young brands in the Chinese market, such as Bershka, Pull&Bear and Stradivarius.