Recently, there have been reports in the media that the Spanish brand ZARA has "closed 9 stores in over two months", sparking rumors of "ZARA gradually withdrawing from the Chinese market," prompting many consumers to urgently "sweep goods."
According to the Daily Economic News, in response to this matter, ZARA staff stated: "The online rumor that ZARA is withdrawing from China is false. There are currently 87 stores operating normally," revealing that "the number of 9 stores closed in over two months is also inaccurate. ZARA has closed three stores in Huizhou, Dongguan, and Baoshan, Shanghai, in the past two months."
According to the financial report of ZARA's parent company, Inditex Group, in 2018, ZARA had 183 stores in Chinese mainland, but as of January 31, 2024, only 96 remained.
It is worth noting that in recent years, news of fast fashion brands "closing stores" and "withdrawing from the Chinese market" is not new. In terms of store numbers, ZARA's number of stores in Chinese mainland has decreased by about a quarter in the past two years. Its sister brands Bershka, Pull&Bear, and Stradivarius have completely exited the Chinese market.
However, in the past year, apart from the Chinese market, ZARA has also net decreased 74 stores in global markets.
According to the Inditex Group's fiscal year 2023 report, from February 1, 2023, to January 31, 2024, its sales increased by 10.4% year-on-year to 35.9 billion euros, and net income increased by 30.3% year-on-year to 5.4 billion euros. Apart from the main brand ZARA, other brands have smaller volumes, and the overall sales growth of Inditex is mainly determined by ZARA, which contributes more than 70% of the group's sales.
