Inditex closes 61 stores in Spain to head overseas
Spanish holding company Inditex, whose portfolio includes fashion brand Zara, closed 61 stores throughout Spain during the first half of its fiscal year in 2013, yet has increased its retail space by 4 per cent over the past five years.
According to Spanish newspaper El Economista, the company is planning to open larger stores and expand overseas while consumer spending in its home country continues to decline.
Inditex had 1,930 stores in Spain on January 31 2013, yet by October 30 that number had declined to just 1,896.
A weaker economy and a new business model for Zara, which includes opening larger stores to house entire collections, is being blamed for the closures.
Inditex claims that the average store is now 20 to 25 per cent bigger than those in the previous years.
Inditex’s flagship brand Zara has closed 39 stores in Spain over the previous years.
Despite the closures, Inditex has opened 79 Zara stores throughout Europe, 54 in the Americas and 107 throughout Asia and the rest of the world as part of its overseas expansion plan.