Inditex has decided to close all physical stores Pull&Bear, Bershka and Stradivarius in China Focus on online channels. The strategically significant strategy is that because the consumer demand of the youngest brands in this group and more buying activities of the youngest consumers are concentrated on online channels, especially in Asian countries/regions.
Professional portal WWD It is the first company to share this information, claiming that the closure will affect a total of 93 companies in mainland China: 37 Pull&Bear companies, 34 Bershka companies and 22 Stradivarius companies. These stores will gradually close in the coming months.
In addition, the company is testing various tools to facilitate online purchases by young brands, such as Live streaming with WeChat widget. In June, Pablo Isla proposed a two-year plan (2020-2022) together with the company’s performance, in which he discussed the strategy of predicting the digital transformation of the Inditex Group. He also announced that he would invest 1 billion euros in the Inditex Group. Promote “online” activities and invest an additional 1.7 billion euros in the corresponding update of the integrated store platform.
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This is not the first time that the company’s plan to close physical stores has been known. Inditex plans to close 1,000 to 1,200 stores worldwide between 2020 and 2021.
In the stock plan proposed in June, the Galician company said it would speed up the acquisition process of physical stores to reduce its global network and make it between 6,700 and 6,900 points of sale. They plan to be in two main markets:
- Spain. Close 250 to 300 stores.
- China. Close 340 to 400 stores.