One of the biggest reasons is affected by the epidemic. During the epidemic, people were stuck at home and didn't have time to go to physical stores. Of course, objective conditions do not allow people to go to physical stores, so in the first half of this year, many physical stores suffered huge losses, which is unpredictable but inevitable. Due to the special transmission mode of the epidemic virus, people can't go to places with large traffic and are blocked at home.
Although no customers go to physical stores to spend money, the costs of physical stores still exist, including rent and other costs, because no one can predict the specific time when the epidemic will really end, and Zara is an international brand, and its brand stores all over the country belong to direct stores, that is to say, all stores are directly controlled by the parent company, but due to the impact of the epidemic, the mobility between countries is relatively reduced. He belongs to a very fashionable brand, but these fashions are limited, but after this period, people's eyes have changed, so its products are difficult to sell, but now the circulation between countries is not very convenient, which leads to the failure to replenish in time, which is also a major reason for the loss.
So the market is unpredictable, and there are many unknown factors that affect it. In the first half of the year, not only Zara's parent company suffered huge losses, but also many big brands, including clothing industry or catering industry, suffered huge losses.