ZARA CLOSES 1200 SIGNS

The coronavirus crisis will not have spared anyone. While it was the market leader, the Spanish group Inditex (Zara, Massimo Dutti, Pull & Bear, etc.) published quarterly results which fell sharply.

Figures far below expectations for the first time since its IPO in 2001. The parent company of the Zara brand is currently experiencing a record sales drop (44%).

Consumers have not been in a rush in shops since deconfinement.

The first figures already show a drop in attendance of 59.8% compared to the same period in 2019.

A new strategy: online sales

To cope with this heavy toll, the Spanish fast-fashion giant has announced that it will close 1,200 stores worldwide, or 16% of its sales outlets. Its Zara brands are therefore targeted, as well as Zara Home, Massimo Dutti, Oysho and even Stradivarius.

Now the Spanish label intends to bet more on its e-commerce by devoting an additional 2.7 billion euros, its sales having doubled in recent months. The group has already set its objectives.

By 2022, the owner of Zara is targeting 25% of its turnover through online sales compared to 14% so far.

In an article published on June 10, the benchmark media Business of Fashion analyzed how the exodus from the metropolises was going to reshape sales in stores.

In the article, Doug Stephens of Retail Prophet explains that the telecommuting revolution will accelerate the advent of a post-digital era for shopping.

“We don't build our lives around the retail business. Retail is built around our lives, "concludes BoF article".




Alyson Braxton for DayNewsWorld