Inditex, the group that owns Zara, closes its 502 stores in Russia, with more than 9,000 employees, and suspends online sales

File photo of a Zara store
File photo of a Zara store

Inditex has decided to close its 502 stores in Russia, its second market after Spain, with more than 9,000 employees, and suspend online sales in that country as a result of the Russian invasion of Ukraine.

“Inditex informs that in the current circumstances it cannot guarantee the continuity of operations and commercial conditions in the Russian Federation and temporarily suspends its activity in the 502 stores (of which 86 are Zara) and in the online channel ‘ of the country”, he pointed out in a statement sent this Saturday to the National Securities Market Commission (CNMV).

Russia constitutes around 8.5% of the group’s global net operating profit (Ebit). Specifically, the result before taxes of this market was 86 million euros in 2020 (229 million euros in 2019), with sales close to 5% of the total, which represents more than 1,000 million euros.

The company founded by Amancio Ortega has highlighted that all stores operate on a rental basis, so the investment is not relevant from a financial point of view.

Inditex has assured that its workforce of more than 9,000 people continues to be a priority, with whom it is going to develop a special support plan from now on.

In this way, the Galician company, whose shares fell 3.78% yesterday, to 20.36 euros, and 16% since the war began last Thursday, March 24, decides to withdraw from Russia after other companies in the textile sector such as H&M, with 168 stores in Russia, and Mango, with 120 stores, of which 65 are franchises, have decided to leave the country.

Among the 30 world companies most exposed to the war, Inditex is the only Spanish that appears, according to a report by the market analysis firm MacroYield.

For its part, Tendam, which has the Cortefiel, Pedro del Hierro, Springfield, Women’secret, Hoss Intropia, High Spirits, Slowlove and Fifty brands, has also decided to temporarily suspend its operations in Russia and close its 50 stores, with nearly 400 employees, as announced by the firm.

“The decision to temporarily suspend activity in Russia will be made guaranteeing the maximum protection to all employees and collaborators,” assured the company, which already closed its franchises in Ukraine last week as a result of the war.

Tendam has indicated that it has made itself available to the Spanish authorities and international NGOs to collaborate in everything that may be necessary both from the company individually and in collective actions.


CNN and Bloomberg will also suspend their broadcast in Russia
What awaits Russia may be much worse than the chaos of the 1990s
Samsung suspended the shipment of products to Russia due to the invasion of Ukraine

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button