Recently, international fast fashion brand Zara announced that it will close 4 stores in Shenzhen, Changsha, and Guiyang within the next 10 days, a move that has been confirmed by Zara’s parent company, Inditex Group. Currently, the number of Zara stores in China has been halved compared to its peak.
According to a report by the “Daily Economic News”, multiple Zara stores across the country have revealed that 4 Zara stores will be officially closing within the next 10 days.
Specifically, the Zara store in Longgang Vanke Plaza in Shenzhen will close on January 16, while the Zara stores in Huaju Shopping Mall and Beichen Delta Joy City in Changsha, and the Impressions City store in Guiyang will all close on January 20.
Employees at these 4 Zara stores have disclosed that the closures are not for renovations but permanent shutdowns; these stores will not reopen in the future.
On January 10, Inditex Group responded to the Red Star News confirming the closure of the 4 aforementioned stores, with the Shenzhen store closing on January 15 and the other 3 stores closing on January 19 after the end of business.
This closure of 4 Zara stores has been interpreted by the market as the beginning of a “countdown for Zara’s exit from China.” However, Inditex has denied this claim, stating that Zara currently operates more than 70 stores in mainland China.
According to data from Dazhong Dianping, the Changsha and Guiyang stores have been listed for 2-4 years, while the Shenzhen Longgang Vanke Plaza store has been listed for 11 years. It is worth noting that the store in Guiyang set to be closed is the only Zara store in the city.
In recent years, Zara has gradually withdrawn from several second-tier cities, with stores closing in cities like Huizhou and Dongguan. As of January 31, 2024, Zara had 96 stores in China, nearly half of the peak of 183 stores in 2018.
Additionally, Inditex Group closed all Pull&Bear, Bershka, and Stradivarius stores in China in 2021. In October 2024, Inditex announced the closure of the Oysho Tmall official flagship store in November 2024.
On December 11, 2024, Inditex Group’s financial report showed a 7.1% year-on-year revenue increase to €27.4 billion from February 1, 2024, to October 31, 2024, with a net profit increase of 8.5% to €4.4 billion and a gross profit margin increase of 4 basis points to 59.4%.