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ZARA's three sister brands will close their offline stores in China. What is the reason?
The reason is mainly because of the epidemic, so it is necessary to close offline stores and reduce losses. Recently, some media reported that Zara's parent company Inditex has decided to close all three offline brands it operates in China, including Bershka, Pull&Bear and Stradivarius. It is expected that this plan will be completed by June this year. A spokesperson said that in the future, these brands will focus on the development of e-commerce and be closer to young people. The internal staff also said that because Inditex belongs to a large clothing company, it can inform the owner to withdraw the store several months in advance without compensation. In addition, the company also said in the announcement that the company will absorb some smaller stores in the future, but the sales of these stores will not be attitude, only accounting for about 5% of the company's total sales.

In fact, it was stated at the company's financial report meeting earlier that the company will make more efforts in online retailing in the next two years, and it is estimated that the first 654.38 billion euros will be used to strengthen the management of e-commerce. And has launched its own e-commerce platform Inditex open platform, and has started running. According to last year's financial data, Inditex Group achieved sales of 65,438+0,465,438+0 billion euros in the first three quarters, showing a considerable refinement year-on-year, while the loss reached 65,438+0.95 euros. According to the information released by the company, Inditex's offline business-oriented model has been greatly adjusted, mainly because of the offline retail revenue caused by the epidemic. However, in the case that the epidemic has not fully recovered, Inditex's performance is hard to say that it will improve, which is why the company began to focus on e-commerce.

According to the company's current plan, in the next one to two years, it will close more than one thousand stores around the world, and online business will become its main sales model, because the company believes that although the epidemic will pass, consumers' shopping habits have changed. However, the company also said that only some old stores have been closed, and the company will expand with the scale of 150 stores per year, and expand the stores with high departmental passenger flow, so the overall position will not be reduced, and the total number of offline stores will not be reduced.

It is reported that the offline stores of the three brands currently closed in China are basically low-end brands, and the prices are relatively cheap and ordinary. Their brand influence is far from the company's Zara, and their performance itself is not ideal. Therefore, this epidemic is just a catalyst to make their brand performance continue to deteriorate. In the end, the company had to cut costs, close stores and switch to online sales.