Zara and Bershka will close about a thousand stores and focus on online retail
The owner of Inditex will close about 1.5 thousand stores. The company owns Zara, Pull & Bear, Bershka, Oysho and Massimo Dutti.
Stores in Europe and Asia will suffer the most. Today, the company owns 7.4 thousand stores around the world. Most likely, 450 new stores will open instead of the closed 1,2 thousand. How they will be projected and where they would be located is still unknown.
The company plans to focus on online retail. While it accounts for 14% of all sales, the company plans to reach 25% by 2022. To do this, the company will invest €2.7 billion in online trading.
Previously, 88% of Indintex stores were closed due to quarantine measures. Sales growth in the company was due to online stores: for the first four months of 2020 by 50%, for April by 95%.
However, the company’s revenue in the first quarter of 2020 decreased by 44% to €3.3 billion.
