Zara operator closes 106 stores despite rising sales
An established global retailer has been quietly shrinking its physical footprint across dozens of markets, leaving behind vacant mall storefronts and shuttered standalone locations around the world.
At first glance, the closures might suggest weakening demand. But shoppers haven't abandoned their favorite brands. Instead, they're changing how they browse, buy, and interact with retailers.
That shift is reshaping the apparel industry.
As consumers embrace a more flexible mix of online and in-store shopping, retailers are rethinking how many stores they need and where those should be located. Across the sector, companies are investing in more productive locations while reducing their overall store count.
Now, one of the world's largest fashion groups is closing more than 100 stores across several brands while continuing to grow sales and invest heavily in future expansion.
The company behind the move is Inditex (Industria de Diseño Textil, S.A.), the Spanish retail giant that owns Zara, Zara Home, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Lefties.
The group operates thousands of stores across nearly 100 markets and maintains online sales platforms in 215 worldwide.
Inditex closes 106 stores across multiple brands
Inditex (IDEXY) closed 106 stores during the first quarter of fiscal 2025, ending the period with 5,456 locations worldwide, according to its earnings report.
The closures are the latest step in a multi-year strategy to optimize the company's store network.
Over the past several years, Inditex has consolidated smaller locations into larger flagship stores while investing heavily in logistics, technology, and digital capabilities to improve efficiency and long-term profitability, rather than reducing its physical retail presence.
Here's some of my previous coverage of Inditex store closures:
As part of that effort, Inditex is investing approximately €900 million ($1.05 billion) annually to improve logistics capabilities, renovate existing stores, and relocate or open locations in high-traffic areas.
"The end result of our unique approach is the integration of the physical with the online experience in a seamless manner that permits us, across multiple formats, to rapidly react to changing fashion trends and offer the latest collections," Inditex CEO Óscar García Maceiras said during an earnings call.
Inditex store closures by brand
Store closures during the quarter included:
- Zara: 50
- Zara Home: 27
- Pull&Bear: 12
- Massimo Dutti: 19
- Bershka: 4
- Stradivarius: 1
- Oysho: 16
Lefties was the only brand to increase its footprint, opening eight new stores during the period.
While several brands opened new locations alongside the closures, Zara and Zara Home accounted for the majority of the reductions. The figures suggest the company is prioritizing larger and more strategically located stores rather than pursuing aggressive store-count growth.
Why is Inditex closing stores?
The closures are part of a long-term strategy focused on upgrading stores, relocating locations, and expanding in key markets.
The company continues to expand internationally while introducing new services designed to improve the customer experience and strengthen the connection between physical stores and online platforms.
"Currently, we have operations in 215 markets with a relatively low market share in each of these," said Maceiras during the earnings call. "Let's not forget the highly fragmented nature of almost all of these markets. All this offers us substantial future growth opportunities."
He added that retail optimization activities, including refurbishments, relocations, openings, and absorptions, were carried out across 44 markets during the quarter.
The strategy reflects a broader retail trend in which industry analysts note that physical stores are no longer seen solely as sales channels but also as fulfillment hubs, customer service centers, and brand showrooms, all aimed at supporting digital growth.
Rather than measuring success by store count alone, many major retailers now focus on productivity per location, customer engagement, and omnichannel capabilities.
The rise of online shopping is reshaping retail
Online shopping continues to play a growing role in global retail sales, influencing how companies allocate resources and design their store networks.
Global e-commerce revenue surpassed $6 trillion in 2024 and is projected to reach $10 trillion by 2033, according to Capital One Shopping.
Still, physical stores remain critical to retail success. Worldwide online sales accounted for just 19.9% of total sales in 2024, indicating that the majority of purchases still occur in person.
For that reason, retailers like Inditex continue investing heavily in brick-and-mortar locations while integrating digital tools that allow customers to move seamlessly between online and in-store shopping.
The company expects annual gross space growth of around 5% in 2026, supported by positive net space contributions and continued strength in online sales.
Inditex also anticipates a 1% negative currency impact on 2026 sales at current exchange rates.
Retail experts say the strategy reflects a broader shift toward omnichannel retailing.
"One of Inditex's major strengths is its omnichannel integration, blending physical stores with a strong online presence," said Forbes Consumer Expert Contributor Kate Hardcastle. "This seamless shopping experience has been critical in keeping Inditex at the forefront of fashion retail, particularly as consumers increasingly demand flexibility in how they shop."
Inditex boosts sales despite store closures
Despite reducing its overall store count, Inditex's financial results suggest its strategy is delivering results.
During the first quarter of fiscal 2025, the company reported a net sales increase of nearly 5.8% year over year, or 8.8% in constant currency.
Executives attributed this growth to strong demand for the company's Spring/Summer collections. Online sales in constant currency from 1 May to 1 June 2026 also rose 11.5% compared with the same period last year.
To support long-term growth, Inditex expects to invest about €2.3 billion ($2.67 billion) in capital expenditures during 2026. The spending will primarily be directed toward commercial space optimization, technology integration, logistics improvements, and digital platform enhancements.
Here's some of my previous coverage of Inditex's retail strategy:
- Bad Bunny's bargain outfit breaks Super Bowl fashion tradition
- Award-winning music star unveils first-ever Zara collection
Although macroeconomic and geopolitical challenges have weighed on sales in parts of the Middle East, the company has continued to post global growth supported by strong product demand and a diversified supply chain.
"We have once again demonstrated a remarkable degree of adaptability, not only in terms of disciplined cost control, but also through the flexibility and resilience of our operating model," said Inditex Director of Investor Relations Gorka García-Tapia in its latest earnings call.
While the closures of more than 100 stores may appear significant on the surface, the numbers point to a company that is reshaping, not shrinking, its retail presence.
Rather than retreating from physical retail, Inditex is concentrating resources into larger, more productive locations while expanding its digital capabilities.
As consumer shopping habits continue to evolve, Inditex is betting that fewer stores, stronger logistics networks, and deeper digital integration will drive more growth than simply operating more locations.
Related: Another retail chain closing all stores after 33 years in business
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This story was originally published June 5, 2026 at 4:03 PM.