Zara’s owner has planned to shut down her 1,200 stores across the world because the relevant industry is struggling to boost its sales that got impacted during the pandemic.
Inditex stated that they would call off 1,200 ZARA stores, approximately, mainly targeting the small stores. Other brands of the same industry have dealt with huge losses as well.
Other brands powered by the Spanish Company; Pull & Bear, Massimo Dutti and Bershka are also expecting a closure soon within Europe and Asia. Though 107 Inditex stores that are present within the UK preserve low chances of being affected by the decision.
They further shared that their headcount would stay persistent and their staff would get different roles in their current jobs, for instance, releasing online orders. Their accumulated store count would drop from 7,412 to 6,800, approximately, after the reorganization. This process would also involve the inauguration of 450 shops.
Inditex, which is a well-known clothing retailer brand, Zara, got hit hard because of the pandemic lockdown. Their sales decreased by 44% from 3.3bn Euros within the month of February.
The organization reported a total loss of 409 million Euros during the first quarter.
Approximately, a quarter percentage of their total amount of stores stood closed from 8th if June. Every firm had to re-evaluate their business models during the pandemic period. In the United Kingdom, the fashion brands; Monsoon Accessorize and Quiz stated on Wednesday that they would call off their branches with a lot of jobs being impacted.
The restaurant industry is also among the rest sectors that have been hit hard. The Restaurant Group confirmed on Wednesday that their 125 outlets, which are mainly Garfunkel’s and Frankie & Benny’s, won’t resume after the lifting of lockdown. The organization also maintains the Wagamama Chain, which didn’t get affected.
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