Inditex to Close 19 Stores in Andalucía

Source: retail4growth

INDITEX to close 19 stores in Andalucia with 195 employees being affected by the move. It is known that two of these store closures will be in the province of Malaga, one of them being located in Rincón de la Victoria. Andalucia is followed by Madrid (eight stores and 83 employees) and Catalonia (another eight stores with 44 workers). The Spanish-owned retail giant operates eight brands includes Zara, Zara Home, Pull&Bear, Stradivarius, Bershka, Oysho, Uterque and Massimo Dutti.

The company will undertake 56 store closures during the months of June, July and August, with the relocation of its 475 employees to other brands operating within the group. This blow comes as a result of dedicating more resources to its digital process, which translates to the absorption of small stores and the commitment to the larger establishments. The brands affected by these takeovers are Oysho (13), Stradivarius and Zara Home (10 each), Massimo Dutti (nine), Pull & Bear and Zara (six), and Bershka and Kiddy’s Class (one each).

In March 2021, Inditex revealed a net profit that exceeded €1.1 billion as online sales skyrocketed with an increase of 77 per cent even with the onset of a global pandemic. The success of the global leader in the online fashion industry is seen in their net sales of €20.4 billion generated from February 1, 2020 to January 31, 2021. This was despite 100 per cent of its stores being closed or having restricted trading hours or capacity during periods of the financial year.

Inditex’s executive chairman Pablo Isla reported that “Inditex as a company is stronger today than it was two years ago, with a unique business model and a global, flexible, digitally integrated and sustainable sales platform, which places us in an excellent position for the future.”

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Diane Burke

Diane is from Limerick, Ireland and has previously lived in Seville. Having graduated with a Masters in Journalism and Public Relations she has a keen interest in digital media. As well as her passion for news, she enjoys learning about human psychology, practising pilates and has a soft spot for tapas!