The Spanish clothing giant Inditex, owner of Zara, the world leader in clothing, announced on Saturday “temporarily suspending its activity in the 502 stores” in Russia as well as on the group’s online shopping sites in the country.
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“Given the current circumstances, Inditex cannot guarantee the continuity of operations and business conditions in the Russian Federation,” the group announced in a press release, specifying that Russia represented approximately 8.5% of its operating profit. .
“Inditex’s priority remains its staff of more than 9,000 people, for whom (the group) will now develop a special support plan,” the statement added.
Of these 502 stores, 86 are Zara stores, the text says.
The company Inditex (acronym of Industria de diseño textil) is today the first group of inexpensive fashion in the world, neck and neck with the Swedish H&M.
Eight brands are grouped within the ready-to-wear group: Zara (nearly 70% of sales), Zara Home, Bershka, Oysho, Stradivarius, Pull&Bear, Massimo Duti and Uterqüe. Some were launched by Amancio Ortega, the group’s founder, others acquired over the years.
The group, present on five continents, accelerated its reorganization process after the COVID-19 crisis, consisting of closing the smallest stores to focus on huge boutiques on the most prestigious arteries of the big cities. It had 6,500 stores in mid-2021.
In 2019, before the pandemic which temporarily reduced its results, its turnover was 28 billion euros and its profit 3.6 billion.