Zara Parent Company Plans To Close Global Stores, Where Will Tianjin Zara Go?

Ten years ago, fast fashion led the trend, and the fast fashion brand line stores expanded rapidly. With the rapid development of China's electricity providers, fast fashion began to slide from the top, and FOREVER21, NEW LOOK and other brands have been withdrawn from China.

Recently, Inditex, the parent company of Zara, released its first quarter settlement, showing that sales fell by 44% compared with the same period last year, with net profit and loss of 409 million euros. Despite the impact of the new coronavirus's outgoing and business ban, on the other hand, online sales increased by 95% in April compared with April last year.

Affected by this, Inditex decided to accelerate the strengthening of online sales and consolidation of the merged shops and set up 450 new stores worldwide. But on the other hand, it decided to close 1200 stores in the existing more than 7400 stores, including "Zara" about 300 shops. At present, it is mainly to close down small shops, but it is not clear whether the shops in China are included.

In addition, there have been rumors recently that "Zara will withdraw from the Tianjin market". In the wake of comprehensive verification, there are also reports that "Zara stores in Tianjin will be closed" and "Pull&Bear Tianjin joy shop and Stradivarius Tianjin joy shop will be closed", and the accuracy of the news has not been officially recognized.

In the tide of quick fashion, Zara's closing shop can not help but sigh that Zara has been popular with young fashion people since entering the Tianjin market. It is understood that Zara stores in Tianjin are not many, only 4.

Including Zara vant Saint Austria store, mileo department store, Tianjin Joy City store, gold treasure Oriental Plaza Shop, these 4 stores except for the gold treasure Oriental Plaza store located in Binhai New Area, the remaining 3 shops are located in the core business district of Tianjin City, where the sales area of Wan Saint Saint shop on peace road is over more than 2300 square meters, and the 4 stores are currently operating normally. Medium.

Through consulting Zara parent company Inditex group financial report data, the total revenue of Inditex group in 2019 (February 1, 2019 - January 31, 2020) was 28 billion 300 million euros, up 8% over the previous year, mainly due to the rise in electricity supplier income, and gross profit of 15 billion 800 million euros, up 7% over the previous year.

Looking ahead, from the 2015 fiscal year, Inditex group's net profit growth is declining year by year. Group profit in fiscal year 2015 rose 14.9%, net profit in fiscal year 2016 was 10%, net profit growth in fiscal 2017 was 6.7%, 2018 in fiscal year 2%.

From the earnings report, since the transition to online e-commerce, compared with the previous year's revenue situation has improved, but in recent years, the fast fashion industry continued to slump, corporate income plunged, coupled with the impact of the epidemic this year, the situation is still not optimistic.

Inditex group has been trying to transform and develop the digital business under the general trend of the industry. As the public said, the focus of the future will be on the online digital platform, and optimize the offline stores to cope with the industry crisis.