Inditex Plans Major Russian Store Closures and Transfers to Daher Group
Inditex, the Spanish fashion giant known for Zara, Pull& Bear, Massimo Dutti, Oysho, Bershka, and Stradivarius, is accelerating the retreat from its Russian footprint by shuttering a large portion of its stores. In total, 269 of the 514 stores once operated in Russia are slated to close as the company rethinks its international presence amid evolving market and geopolitical conditions. The move fits into a longer strategy to unwind overseas operations and recalibrate Inditexs global footprint, a plan that has been evolving since late 2022 and was reported by TASS.
As part of the ongoing reorganization, Inditex is advancing toward finalizing a sale and purchase agreement that would transfer ownership of 245 Russian stores to the Daher group. Following the completion of this deal, those locations will operate under Daher’s branding and management, severing direct branding and day-to-day operations from Inditex. The shift marks a significant geographic realignment of the companys physical retail network in Russia and will redefine local market dynamics while maintaining continuity for any franchise arrangements that remain in place. Data from TASS confirms this transition and its implications for brand visibility in the region.
Company officials explained that once the transfer closes, the stores will join Daher’s retail network and will host points of sale for brands that continue to operate independently of Inditex. The exit plan also contemplates a potential pathway for future reentry into the Russian market through a franchise model if market conditions permit. Any such reentry would be structured to keep the parent corporate framework distinct from the stores and brands that are no longer aligned with Inditexs corporate strategy, according to the same source.
In recent communications, Inditex indicated that negotiations related to exiting the Russian Federation are approaching a final stage. The language stresses a deliberate, controlled wind-down of operations aimed at minimizing disruption for employees, customers, and franchise partners while preserving value in the assets involved in the transition. This approach aligns with a broader objective to reduce exposure in the region while retaining potential upside through asset transfers and the possibility of a future franchise arrangement under different market conditions, as reported by TASS.
From a financial perspective, Inditex has highlighted robust performance in recent years. For the 2022 fiscal year, the company posted a net profit increase of 27 percent year over year, reaching 4.13 billion euros. The gains underscore the strength of Inditexs diversified brand portfolio and its global distribution capabilities, even as the group navigates external pressures such as geopolitical shifts and changing consumer behavior. These results contribute to a broader narrative of resilience and ongoing strategic consolidation as the company recalibrates its footprint to align with long-term corporate priorities, according to TASS.