INDEX, Zara’s parent company, said on Wednesday it plans to permanently close 1,000 to 1,200 of its stores, equivalent to 13 to 16 percent of its global stores, and to move more aggressively to online sales in response to changes in consumer habits following the outbreak. Given the changes in consumer behavior following the outbreak, the company plans to focus its resources on online-sales, aiming to make online sales a quarter of total sales by 2022.
The company said the planned closure of stores would affect brands such as Zara, Massimo Dutti, Pull and Bear, mainly smaller stores.
Inditex, one of the world’s largest fashion retailers, was hit hard by the outbreak, with sales falling 44 per cent to 3.3 billion euros in the first quarter to the end of April, with a net loss of 409 million euros. As of June 8, nearly a quarter of its stores were still closed.