Zara Says Spanish Fast Fashion Retailer Is Not Exiting China

Zara is not withdrawing from the China market, parent company Inditex told Yicai in response to online rumors that the Spanish clothing chain is about to quit the country and has shut nine stores in the last two months.

Zara only closed three outlets in February and March and plans to open more soon, a company insider said. Zara is constantly optimizing its store layout by opening larger stores and equipping them with the latest digital innovations to give Chinese consumers a more integrated and digital experience, he added.

Inditex is adjusting its outlet strategy, both in China and in other markets around the world, Yicai learned. Some of the old stores will be closed and replaced by bigger stores which are equipped with the latest technology so as to better represent the group’s brand image.

“In August last year, we opened a flagship Zara outlet in Shenyang Joy City, started a pop-up store in Shanghai and launched a local co-branded collection,” the person said. “This year, our company will upgrade the Zara store on Nanjing East Road in Shanghai and it will continue to open new stores in other cities.”

The China market is an important strategic market for Zara and Inditex, which has been operating in the country since 2004, the Arteixo-based firm said. The retailer runs brick-and-mortar stores across nearly 50 cities, and also operates on a wide variety of online platforms such as Zara’s website, app, mini programs, as well as on e-retailers Douyin and Tmall.

Foreign fashion brands that have been in the market for many years are constantly adjusting their previous expansion by closing stores and opening new ones.

Fast Retailing, the Japanese parent company of Uniqlo, will close unprofitable stores in China and at the same time open new ones to optimize its store layout in the country, Chief Financial Officer Takeshi Okazaki said last month.

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