Could Zara be next on the retail chopping block?

Will online shopping be the only option in South Africa, too?

The coronavirus is having a ‘severe but temporary’ impact on Zara’s business, as one analyst put it. AFP/Sameer Al-DOUMY

Social media speculation is rife about local fashion retailer Zara potentially closing shop in SA.

This comes after the Guardian published an article stating that 1,200 stores would close globally with the Spanish retailer making the move toward online shopping.

The stores soon to be closed are said to be in Asia and Europe.

Zara has not announced specific outlets will be closed in South Africa as yet nor has it communicated if some stores will stop trading in South Africa.

This follows on the heels of the Edcon Holdings reportedly to be releasing approximately 22,000 of its employees after serving them with retrenchment notices last Thursday amid its business rescue process.

The latest reports come after the retail company, which operates Edgars, Jet and CNA, and runs the Thank U programme, placed itself under voluntary business rescue due to a massive R2-billion economic fallout from the Covid-19 lockdown.

Zara is closing physical stores and opening online stores. They are not going anywhere.
4th Industrial revolutionary is here. Thousands of youth in South Africa are going to loose their jobs.
E-commerce is taking over. It's here to stay, let's adapt,create and run our own economy pic.twitter.com/8dRwFqJ8Uh

— Lonwabo (@LonwaboFeleza) June 16, 2020