19 Jun Zara Is Closing More Than 1,000 Stores
Zara announced plans to close more than 1,000 stores to focus on online shopping amid the pandemic.
The Spanish fashion retailer plans to shift its focus to e-commerce in result on the effect that the coronavirus crisis has had on the retail and fashion industry.
Inditex, Zara’s parent company, announced that it will close as many as 1,200 stores over the next three years and will invest $3 billion in digital operations.
Inditex will complete their store optimisation programme in the 2020-2021 period, which will shutter “stores at the end of their useful life.”
Key projects include opening new online studios at Zara headquarters by the end of 2020 and an “increase [in] the online customer service teams and the dedicated packaging both from the specific online stockrooms and from the store.”
The retailer reported a net loss of $465 million for February through April when 88% of its stores were closed due to coronavirus concerns, yet online sales grew more than 95%.
Zara is not the only fashion retailer to fall prey to the coronavirus pandemic. Coresight Research predicts that 25,000 U.S. stores could close this year, nearly tripling last year’s numbers.
Retailers J. Crew, JCPenney, Neiman Marcus and Pier 1 Imports have all filed for bankruptcy after being affected by the pandemic.