Inditex, the Spanish parent company of popular fashion brands such as Zara, Massimo Dutti, Pull & Bear, Stradivarius and Bershka, is planning to gradually reopen its shops in Ukraine from April 1, after suspending its business operations in the country for two years due to the Russian invasion and the subsequent sanctions. Inditex confirmed the plan to FashionUnited on Friday and said that the safety of its employees and customers remains its priority.
Inditex’s Decision to Reopen Its Shops in Ukraine
According to reports, Inditex is initially planning to reopen around 20 shops in the Kiev area, but the situation remains uncertain. In total, 50 of the former 80 or so shops of the various Inditex brands are expected to reopen in the coming months. The online activities of the Zara parent company are also set to restart.
Inditex’s decision to resume its business operations in Ukraine follows the recent developments in the region, such as the ceasefire agreement between Russia and Ukraine, the easing of the Western sanctions, and the improvement of the economic and social conditions. Inditex said that the reopening of its shops will depend on the local market circumstances and the public health regulations.
Inditex’s decision also reflects its confidence and commitment to the Ukrainian market, which was one of its fastest-growing and most profitable markets before the crisis. Inditex entered the Ukrainian market in 2008 and expanded rapidly, reaching 80 shops and 2,000 employees by 2019. Inditex also invested in the local infrastructure and the supply chain, and supported the local fashion industry and the social initiatives.
Inditex’s Suspension of Its Business Operations in Ukraine and Russia
Inditex’s business operations, both online and offline, were discontinued in Ukraine in March 2022, shortly after Russia invaded Ukraine on February 24 and the Western countries imposed sanctions on Russia and its allies. Inditex said that it was forced to close its shops and its online platforms due to the security and the logistical issues, and that it hoped to resume its operations as soon as possible.
Inditex’s business operations in the Russian region were also suspended until further notice and all 502 shops there were closed. Inditex said that it was unable to operate in Russia due to the sanctions and the restrictions, and that it was looking for alternatives to continue serving its customers. However, in October 2022, Inditex announced that it had sold its entire Russian business to a local partner, citing the uncertainty and the instability of the market.
Inditex’s Recovery and Growth Strategy
Inditex’s suspension of its business operations in Ukraine and Russia had a significant impact on its financial performance and its global presence. Inditex reported a 15% drop in its sales and a 25% drop in its net profit in 2022, compared to the previous year. Inditex also lost its position as the world’s largest listed fast fashion company by sales, which was taken over by its rival H&M.
However, Inditex has been working hard to recover and to grow its business in other markets and regions, such as Europe, Asia, and America. Inditex has been focusing on its digital transformation and its sustainability strategy, which aim to enhance its customer experience and its environmental and social impact. Inditex has also been launching new brands and products, such as Zara Beauty, Zara Home, and Uterqüe, to diversify its portfolio and to attract new customers.
Inditex’s reopening of its shops in Ukraine is a positive sign for its recovery and growth, as it shows its resilience and its adaptability to the changing market conditions. Inditex’s reopening of its shops in Ukraine is also a positive sign for the Ukrainian fashion industry and the consumers, as it offers them more choices and opportunities. Inditex’s reopening of its shops in Ukraine is a hopeful and optimistic move, that signals a new and better chapter for the company and the country.
