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Zara owner Inditex temporarily closing shops in Russia
The Zara owner is one of many multinationals that have suspended business in Russia following its February 24 invasion of Ukraine.
Facade of Zara store with customers. Zara is a fast-fashion retail brand from Spain owned by Inditex | Picture: iStock
Spanish clothing giant Inditex, which owns Zara, announced Saturday it was temporarily closing hundreds of shops in Russia as well as the group’s online shopping store.
Inditex is one of many multinationals that have suspended business in Russia following its February 24 invasion of Ukraine.
The company is “temporarily suspending its activity in 502 shops,” it said in a statement.
“Given the current circumstances, Inditex cannot guarantee the continuity of operations and business conditions in the Russian Federation,” it added.
Inditex said Russia made up around 8.5 percent of its earnings.
“Inditex’s priority remains its staff of more than 9,000 for whom (the group) will now develop a special support plan,” it added.
Among the 502 stores, 86 are Zara shops, the statement said.
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Inditex is today the number one company in the world for cheap fashion, neck and neck with Swedish giant H&M.
Eight brands make up the ready-to-wear fashion giant: Zara (nearly 70 percent of sales), Zara Home, Bershka, Oysho, Stradivarius, Pull&Bear, Massimo Duti and Uterque.
Some were launched by the group’s founder, Amancio Ortega, while others were acquired over the years.
The company, available in five continents, accelerated its reorganisation after the Covid-19 pandemic by closing smaller shops to focus on larger stores in the most prestigious avenues of bigger cities.
Inditex had around 6,500 shops in mid-2021.
Turnover was over 28 billion euros ($30 billion) in and profit 3.6 billion euros in 2019, before the coronavirus pandemic temporarily slashed its results.
Fury over ‘reckless’ Russian attack on Ukraine nuclear plant
Ukraine and its allies expressed fury on Friday after Europe’s largest atomic power plant was attacked and seized by invading Russian forces, which continued to shell major cities.
The six reactors at Zaporizhzhia, which can power up to four million homes, appeared undamaged by the fighting and a fire that broke out in a training facility.
But Kyiv accused the Kremlin of “nuclear terror”, and US envoy to the United Nations Linda Thomas-Greenfield said the attack was “incredibly reckless and dangerous”.
Moscow’s UN ambassador called accusations that Russian forces had shelled the plant part of “an unprecedented campaign of lies”.
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