Zara parent company Inditex closes 3,785 stores across 39 markets

Fashion retailer Inditex has temporarily closed 3,785 stores in 39 markets as an impact of the COVID-19 outbreak. Marketing has reached out to Inditex for additional information on which markets in Asia are impacted. The company added that its online sales will continue as usual in all markets, including Indonesia, Japan, China, Spain, Germany, and the United States. Inditex is the parent company of fashion brands including Zara, Bershka, Massimo Dutti, and Pull&Bear.

According to the company, sales from Asia and the rest of the world represented 22.5% of its total sales in 2019, while Spain represented 15.7% of total sales, Europe (excluding Spain) represented 46%, and the markets in Americas accounted for 15.8%. This year, Inditex saw a decrease of 4.9% in store and online sales between 1 February and 16 March 2020, as said in a statement on its website. Between 1 and 16 March 2020, store and online sales decreased by 24.1%. The company also said that its spring-summer collections were initially very well received by customers in February. However, the global expansion of COVID-19 has since had an impact in certain markets. 

Inditex also said the current situation is caused by external and temporary factors, and it does not change the company's long-term vision for its business model, fundamentals, and growth potential. The company added that it is too soon to quantify the future impact of COVID-19 on its operations in 2020, and that it is monitoring the developments very closely. 

In 2018, Zara launched its online store to bring its fashion collections to 106 new markets. Most of these new markets are in Africa and include Angola, Ivory Coast, Senegal and Ghana. The online store is also making its debut in numerous parts of the Caribbean and Indonesia.

Last year, it also committed to make 100% of its stores eco-efficient by the end of year. This comes as part of Inditex's larger aim to make 100% of the cotton, linen and polyester used by all eight of its brands will be organic, sustainable or recycled by 2025. Inditex added that 80% of the energy used in the group's activities such as stores, logistic centres and offices will also be renewable by 2025.