The Diplomat
Inditex has decided to close its 502 shops in Russia, its second largest market after Spain, with more than 9,000 employees, as a result of the Russian invasion in Ukraine.
In a statement sent to the Comisión Nacional del Mercado de Valores (CNMV), the company founded by Amancio Ortega, reports that “in the current circumstances it cannot guarantee the continuity of operations and commercial conditions in the Russian Federation”.
Therefore, it states that “it is temporarily suspending its activity in the 502 shops (of which 86 are Zara) and in the online channel in the country”.
Russia accounts for around 8.5% of the group’s global net operating income (EBIT).
Inditex specifies that all shops operate on a rental basis, so the investment is not relevant from a financial point of view.
The company assures that its priority continues to be its workforce of more than 9,000 people, with whom it is going to develop a special support plan from this moment onwards.
Tendam (Cortefiel), which includes the brands Cortefiel, Pedro del Hierro, Springfield, Women’secret, Hoss Intropia, High Spirits, Slowlove and Fifty, has also decided to temporarily suspend its operations in Russia and close its 50 shops, with around 400 employees, according to the company.
