Oscar Garcia Maceiras, the CEO of Inditex, spoke about the company’s strategic stance on the Russian market. Inditex, the parent of fashion labels Zara, Pull & Bear, Massimo Dutti, Oysho, Bershka and Stradivarius, indicates a readiness to return to Russia if geopolitical conditions improve. The group previously sold its Russian business to Daher, a UAE-registered company, but the deal includes options for potential future collaboration should Inditex reenter the market.
The CEO explained to the Financial Times that if market conditions allow, Inditex could resume operations in Russia using its existing store footprint transferred to Daher. In such a scenario, Inditex would run its stores in a company controlled format while Daher would operate as a franchise partner. The plan contemplates a cautious rebuild rather than an immediate reopening, with attention to regulatory, logistical, and brand integrity issues. The company also aims to expand its footprint in the United States and plan to allocate the majority of its 2023 capital expenditure toward opening or expanding stores globally, including ventures in the US market.
Return under a new brand umbrella
News from late October 2022 confirmed that Inditex sold its business in Russia to Daher. Details of the price were not disclosed, yet the agreement allows for potential franchising arrangements should Inditex decide to re-enter Russia. Inditex also prohibited the sale of its products in Daher stores, a precaution aimed at avoiding brand dilution or counterfeit risks through third parties.
In November 2022, Daher announced it would operate in Russia under its own brand portfolio. On March 10, the Mash Telegram channel reported possible rebranding in Russia for Bershka and Pull & Bear, with Bershka reportedly adopting the Ecru name and Pull & Bear rebranding as DUB as early as April 2023. The report suggested cost stability for goods despite the brand changes and indicated Daher was actively recruiting former Inditex staff and seeking to reacquaint the brands with familiar storefronts.
Industry sources quoted by Mash noted that Daher was exploring openings in Moscow’s Aviapark among other locations in spring 2023. Plans described women’s, men’s and children’s lines that might involve collaboration with Inditex representatives. In October, Inditex’s Russia division rebranded from Zara CIS to New Fashion, and by December, New Fashion had registered the domains vilet, dub and ecru alongside maag, signaling a strategic shift in naming and branding under Daher’s control. Analysts suggested these stores could carry collections produced on behalf of Daher with possible participation from Inditex in design or sourcing. The shift also raised expectations about purchasing power, logistics costs, and the complexity of handling cross-border transactions under a new owner’s governance.
Market forecasts from Fashion Consulting Group indicated a 2022 contraction in Russia’s fashion segment, with clothing, footwear and accessories sales slipping about 10 percent year over year to roughly 2.4 trillion rubles. The Inditex stores paused operations on March 5, 2022 in response to the Ukraine conflict, leaving Russia as the group’s second-largest market after Spain. The country accounted for a meaningful portion of the company’s EBITDA on a global basis. Following the exit, the United States emerged as the second-largest market for Inditex in terms of sales. The company’s 2022 earnings reflected a rebound across its global operations, with sales rising 17.5 percent to 32.6 billion euros and net income up 27 percent to 4.1 billion euros, underscoring the resilience of the brand portfolio even as regional shifts occurred.