return icon

Local outlets of Zara possibly subject to major restructuring by Inditex

Losses following COVID-19 caused Zara's parent company Inditex to close many of its fashion shops, and both Vietnamese Zara outlets could be included.    

local outlets of zara possibly subject to major restructuring by inditex
Zara's outlet in Ba Trieu street, Hanoi

Entering Vietnam four years ago, Zara has been present in the local market with two outlets, one in Ho Chi Minh City and another in the capital of Hanoi. Both are located at favourable locations which, in turn, also is reflected by high monthly rents of hundreds of millions of US dollars. During Vietnam's national social distancing nearly two months ago, both stores had no choice but to interrupt operation, which resulted in unavoidable damage to the outlets' revenue.

As soon as this year's initial losses were reported, Inditex – Zara's Spanish parent company – decided to shut down around 1,200 stores across the globe in the next two years, equalling 16 per cent of its total retail points. The decision also includes some of Inditex' other fashion brands, such as Bersha, Pull&Bear, and Massimo Dutti.

The Spanish group announced to particularly close those shops that were performing inefficiently, with the restructuring aiming to accumulate profits from the more profitable establishments as well as its online vendors.

In the period between February and April, Inditex recorded a deficit of over $460 million and a net profit of just under $830 million.

Meanwhile, the group has made plans to invest around $1.13 billion into building up its online shopping platform in the next three years.

Moreover, Inditex will also invest another $1.92 billion to upgrade its integrated digital platforms in its store system. Accordingly, the company's physical outlets will be both, distributors for its online business and places for customers to come in and enjoy a direct shopping experience.

Last year, Inditex's online business occupied about 14 per cent of its total revenue. The group expects the proportion to grow to 25 per cent in 2022. In April alone – the peak of COVID-19 in many countries – saw its online sales spiked to around 95 per cent.

Despite planning to shut down a large number of its physical stores, Inditex asserted that the number of its staff will remain stable, with some of them moving to other departments and others being responsible for the online shopping arm. VIR

Van Anh


Vietnam, Cuba strive to lift two-way trade to US$500 million in next five years

The Vietnam-Cuba business promotion forum took place in Hanoi on September 30, seeing the participation of visiting Cuban Prime Minister Manuel Marrero Cruz and Vietnamese Deputy Prime Minister Le Minh Khai.

Vietnam defeat Saudi Arabia, top Group D at AFC Futsal Asian Cup

Vietnam beat Saudi Arabia 3-1 at the AFC Futsal Asian Cup 2022 in Kuwait on September 30, thereby topping Group D and having a high chance of securing a berth in the quarter-finals.

EuroCham Chairman praises strong and forward-looking government

Vietnam’s recovery has been ensured by strong and forward-looking government support which helped to bring in more high-profile FDI projects

Many firms suspend raising capital from stock market

Many enterprises have either stopped mobilizing capital or changed their capital-raising plans on the stock market amid existing uncertainties and disadvantages.

HCM City runs out of Covid-19 vaccines

HCM City has run out of Covid-19 vaccines over the past 10 days, said Nguyen Hong Tam, the deputy director of the municipal Centre for Disease Control and Prevention.


Chinese police hand over wanted man to Lao Cai authorities

Foreign-invested enterprises face up to procedural barriers

Administrative procedures such as a prolonged timeline for obtaining business licences, as well as overlaps in the legal framework, are continuing to affect the expansion plans of many foreign-invested enterprises in Vietnam. Vietnam among ten attractive destinations to escape Europe’s winter

With its year-round warm tropical climate, breathtakingly beautiful scenery, and exciting culture, Vietnam is gradually becoming an attractive destination for German tourists.


Real estate sector faces debt default risk

Shan Tuyet tea, valuable timber plants named ‘Vietnam Heritage Trees’

More than 1,300 Shan Tuyet tea plants in Ha Giang province and a group of valuable timber trees in Dak Nong province have been recognised as “Vietnam Heritage Trees”.

Fast fashion brands scale up for growth

Surviving and developing in a competitive fast fashion market remains a challenge for many brands, especially for newcomers.

Arguments arise as properties required to be traded on exchange

Controversy has arisen over the Ministry of Construction’s draft of the amended law on real estate trading as it requires real estate products to be traded on an official exchange.

Boeing accelerates cooperation with Vietnamese suppliers

Boeing, the world’s leading aerospace company based in the US, are accelerating cooperation with Vietnamese suppliers and universities to provide a foundation for long-term industrial growth.

Expecting coffee exports to hit a record $4 billion

Vietnam Coffee Cocoa Association (Vicofa) forecasted that if the export price of coffee remained at a high level, as in the first half of the year

Major investors worry as stock market weakens

The stock market boards have been covered with red amid investors’ rising caution. There are few buyers, while selling pressure still exists. Foreign investors’ behavior has affected the market.