Inditex closing down 800 outlets worldwide
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Spanish apparel retailer Inditex has temporarily shuttered almost 3800 stores in 39 markets internationally in the midst of the coronavirus outbreak.
All Inditex locations in its home territory are currently closed for business.
Affected stores include Zara, Pull & Bear, Massimo Dutti and Bershka-branded outlets, sales at all of which have been strongly affected by the virus.
Retail takings for the group dropped 24.1 percent in the first fortnight of March.
While the firm stated it is too early to predict the ultimate impact of the outbreak on its business, Inditex expressed confidence in its business model to weather the crisis, even as European countries begin to enforce government-mandated lockdowns.
The firm has set up remote working systems at its Spanish head office and closed gym and bus services.
Questions & Answers
Q.Which specific brands are affected by the store closures?
Which specific brands are affected by the store closures?
The closures impact several Inditex brands including Zara, Pull & Bear, Massimo Dutti, and Bershka. Sales at all these outlets have been significantly affected by the coronavirus outbreak.
Q.What measures has Inditex taken to manage its operations during the crisis?
What measures has Inditex taken to manage its operations during the crisis?
Inditex has implemented remote working systems at its Spanish head office. It has also closed its gym and bus services to help manage operations during the current situation.
Q.Does Inditex expect its business model to withstand the current challenges?
Does Inditex expect its business model to withstand the current challenges?
Yes, despite the widespread closures and financial impact, Inditex has expressed confidence in its business model's ability to weather the crisis, even with government-mandated lockdowns in Europe.
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