There’s some bad news for fashionistas, it looks like fast fashion retailer Zara is shutting down several stores globally.
Bustle reported that the clothing brand is the “latest in a long line of brands and designers whose business has been thwarted by the worldwide COVID-19 pandemic”.
According to a statement published by the brand, Inditex (Zara’s parent company), they will be closing down between 1,000 and 2,000 stores over the next two years due to reduced sales.
In the meantime, they will spend resources on e-commerce and online sale strategies.
“While Inditex was not specific about which Zara stores it would be closing, they shared that the plan includes 500 to 600 units each year. The optimisation plan focuses on stores at the end of their useful life, especially young concepts whose sales can be recovered in nearby stores and online,” according to Bustle.
They plan to re-allocate funds to support their online platform, adding in a report on their website that they would be infusing that part of their business with €1 billion for “bolstering the online business” and an additional €1.7 billion for “upgrading the integrated store platform, deploying advanced technology solutions.”