Malta’s Zara and Zara Home outlets are to remain open despite the sudden announced closure of around 1,200 outlets worldwide.
Amidst the COVID-19 pandemic, Zara’s mother company Inditex said it had experienced lower sales – €3.3 billion for their first quarter, a significant decrease from the previous year’s €5.9 billion. Now, they want to move more sales online and find ways of closing down smaller, less lucrative stores.
Fortunately for Maltese fashionistas though, Malta’s outlets are not facing the chopping block.
“PG plc, which operates the franchise of Zara and Zara Home in Malta had understood this new strategy and in fact anticipated this move by investing in its new store in Tower Road Sliema,” Chief Executive Officer Charles Borg said.
“This investment is very much in line with the new strategic direction of the Zara brand,” he continued.
However, he noted that globally, “small stores which are at the end of their life cycle and which do not add value will be closed down”.
That is not to say that Zara’s physical stores will be second-class to their online counterparts.
Inditex is looking to further integrate their physical stores with their online stores, whilst focusing on their high-quality stores, rather than smaller ones which do not offer high returns.
Having said that, physical stores will continue to play a stronger role in the development of Inditex’s online sales due to their planned digitalisation and their potential in reaching customers.