Popular fashion retailer, Zara, will be closing over 1000 of its stores worldwide. Because of this decision, the beloved brand takes a spot on the long list of brands resizing and restructuring due to the effects of the unforeseen global pandemic.
In a statement published by Inditex, Zara’s parent company, it was communicated that the retailer will be closing more than 1000 stores as part of a new business strategy.
It reads, “Inditex has decided to absorb between 1,000 and 1,200 stores in the years 2020 and 2021. The plan includes 500-600 units each year. The optimisation plan focuses on stores at the end of their useful life, especially young concepts whose sales can be recovered in nearby stores and online.”
The locations of stores to be closed are not revealed but it was made clear that the decision was made to give more attention to online sales.
“Three key strategic areas: digitalisation, integration between stores and online, and sustainability. Stores will play a stronger role in the development of online sales due to their digitalisation and capacity to reach customers from the best locations worldwide. It is for this reason that we must focus on those high quality stores that are best able to deliver on these long-term strategic goals. The strong growth of online supports our global strategy from 2010. Online sales are expected to reach more than 25% of total sales by 2022.”
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