Inditex will focus on online sales
Spanish company Inditex, which owns brands such as Zara, Pull & Bear, Massimo Duty, Bershka, Osho and others, will close 1,200 stores worldwide and direct all efforts to develop online sales. Quarantine measures initiated to stop the spread of Kovid-19 in the world are to blame – the company’s sales have fallen by 44%.
Inditex said it would close 1,000 to 1,200 of its stores, mainly in Asia and Europe. The company also plans to open 450 new stores. As a result, after reorganization the number of outlets will be reduced from 7412 to 6700-6900. According to Inditex, they are not planning to reduce the number of personnel, they will offer other functions to the personnel of closed shops, for example, processing and sending online orders.
Inditex, one of the world’s largest clothing retailers, was hit hard during the epidemic. Sales fell 44% to 3.3 billion euros during the first quarter of the fiscal year (from 1 February to 30 April). The net loss in the quarter was 409 million euros. Around 25% of its stores remained closed in early June.
However, according to Inditex, sales growth on the Internet slightly offset sales declines. Online sales grew 50% year over year during the quarter and 95% year over year in April. So now the company plans to focus on the development of e-commerce.
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It was previously reported that the fortune of Inditex founder Amancio Ortega increased by $ 5.2 billion during the bayonet period to $ 60.5 billion.
Read: Top e-commerce trends in 2020
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