Inditex brands in China are experiencing increasing competition from a host of local online competitors.
The Spanish fashion giant Inditex plans to close all of its Bershka, Pull & Bear, and Stradivarius stores in mainland China. It could happen by the end of January 2021. Currently, Bershka has 34 stores in China, Pull & Bear has 37, and Stradivarius has 22.
All three of these brands, which are roughly in the same price range, first appeared in China in 2009. However, recently, they have been under severe pressure from online competitors, making it unprofitable to support physical outlets. Meanwhile, other Inditex brands - Zara, Zara Home, Massimo Dutti, and Oysho - will retain stores in the region.
It all started in June 2020, when it became known that the Bershka store in Guangzhou was selling off leftovers to close, which happened in July. Then, Pull & Bear and Stradivarius stores were closed in the same city in August and October, respectively. Now, Inditex intends to close stores of these brands across the country altogether. Though no official announcement has been made yet, the plans for closure were reported by WWD journalists, who, in turn, learned about them from several anonymous sources.
This strategy falls within the previously announced plans of the Spanish company. Inditex has said it intends to close about 1,200 smaller stores worldwide by 2022 and focus on larger flagship stores.
11 JANUARY 2021, China