Inditex closes 61 stores in Spain

Monday, 06 January 2014
Spanish holding company Inditex has closed 61 stores throughout Spain during the first half of its fiscal year from February to November 2013, but has increased the amount of retail space by 4 percent over the past five years.

 

According to Spanish newspaper El Economista, the company is currently focusing on opening larger stores and expanding overseas as consumer spending in its home country has declined over the past five years.

 

On January 31, 2013 Inditex had a total of 1,930 local stores in Spain, however by October 30, 2013, this number had dropped to 1,869. El Economista points out that this is slightly less than the amount of stores Inditex had running end of 2008, the start of the economical crisis which was 1,896.

 

Some of the reasons for the store closures are are linked to declining sales in Spain due to the economical crisis, as well as the implementation of Inditex's biggest brand Zara's new store concept and business model, which includes the opening of larger stores to house entire collections.

 

Inditex adds that the store closures are exceptional and points out that sales in Spain have dropped by 8.1 percent since its record turnover was achieved in 2006; 3.865 million euros. The company also states that the average store size has increased 20 to 25 percent over the past years and new stores offer more retail space than the previous stores.

 

Inditex's brand Zara has witnessed the highest number of store closures in Spain, as 39 Zara stores have been shut in the previous years. However throughout 2013, Zara has opened 79 new stores throughout Europe, 54 in the Americas and 107 throughout Asia and the rest of the world.

 

 

 

 

 

 

 

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