Zara to Close 1,200 Stores Boosting Online Sales

The owner of Zara will close up to 1,200 stores worldwide as clothing retailer attempts to boost online sales during the COVID-19 pandemic crisis.

Spanish multinational clothing company and parent of Zara "Inditex" said it would close between 1,000-1,200 smaller stores mainly, with losses concentrated among old stores other than Zara, including Bershka, Pull & Bear and Massimo Dutti.

Closures are expected to be mainly in Asia and Europe, as well as 107 Inditex stores in the UK.

"The number of employees will remain constant," said Inditex, with employees offering roles in other jobs such as sending online purchasing jobs.

The total number of stores will drop from 7,412 to between 6,700-6,900 after the reorganization, which will also include the opening of 450 new stores.

Inditex, one of the world's largest clothing retailers, was hit hard during the epidemic, with sales falling 44% to € 3.3 billion between February 1 and April 30 in Q1 2020.

The Spanish company reported a net loss of €409 million during the quarter, as nearly a quarter of its stores remained closed until June 8.

Meantime, Inditex said that online sales growth compensated for some sales weaknesses. Online sales increased 50% year-on-year during the quarter, and 95% in April.