As most countries around the world are hit by Covid-19 outbreaks, retails fashion shops have not been allowed to operate for months.
Popular shops like ZARA, Massimo Dutti, and Pull&Bear are no exception.
In its latest report, Inditex – the Spanish conglomerate which owns these companies – reported losses of ~S$645 million (409 million euros) between February and April.
In response, the Spanish firm reportedly plans on focusing on its larger stores and will be closing 1,200 of its smaller outlets by 2021.
According to China Press, the 1,200 outlets that will be closed over the next 2 years account for around 16% of Inditex’s stores worldwide, including Asia.
This means that the total number of stores will decrease from 7,412 to around 6,700 to 6,900.
Instead, the Spanish group will reportedly be focusing on its bigger stores, increasing their floor spaces from 2020-2022.
Between February and April, Inditex was reportedly forced to shut 88% of its stores worldwide.
But things seem to have improved since last month, as 78% of its stores in 79 countries are allowed to operate, as of 8 Jun.
Moving forward, Inditex also plans on directing more resources to ramp up online sales.
The company apparently saw online sales surge by 95% alone during April, when most countries around the world were under lockdown measures.
As such, The Guardian reported that “headcount will remain stable”. They will be assigning staff roles in other jobs like sending off online purchases.
We’ve reached out to ZARA Singapore to enquire if stores here will be affected.
While the closures of ZARA, Massimo Dutti, and Pull&Bear might come as a shock for many, it once again highlights the scale of the Covid-19 disruption and the importance of adapting during these uncertain periods.
We hope businesses will continue to find ways so that they can continue to survive and thrive during the pandemic.
Featured image adapted from The Business of Fashion.
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