The textile giant Inditexowner of Zarahas announced the suspension of activity of its 502 stores in Russia, as well as the online channel in the country. As reported to the CNMV, 86 of these stores are from Zara.
“Inditex informs that in the current circumstances 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 country’s online channel,” the firm explained in the statement.
The Russian market represents for Inditex the 8.5% of their gross profit before interest and taxes (EBIT), but they point out that their stores operate on a rental basis “so the investment is not relevant from a financial point of view”.
“Inditex continues to prioritize its workforce of more than 9,000 peoplewith which it is going to develop a special support plan from this moment on,” the note asserts.
The conglomerate’s decision joins that of other major brands such as Microsoft, Apple or Samsung that announced the restriction of their commercial activity in the country due to the invasion of Ukraine. On Russian soil, Inditex operates under the banners Bershka, Pull&Bear, Zara, Stradivarius, Oysho, Massimo Dutti, Zara Home and Uterqüe. Within the textile sector, the Swedish Hennes and Mauritz (H&M) announced on Wednesday the temporary suspension of its sales in Russia due to the war with Ukraine, a decision that brands such as Nike, Adidas, Mango and Burberry have also already adopted.
Source: Lasexta
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