Zara Shuts Stores But Grows Online: Inside Inditex’s New Playbook

The owner of Zara and Pull&Bear closes 136 shops in early 2025 as it bets on flagship stores and e-commerce growth

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Inditex, the group behind Zara, Stradivarius, Oysho and Massimo Dutti, closed 136 stores in the first quarter of 2025, marking a new phase in its global strategy.

The move signals a clear turn towards efficiency, improved shopping experiences and a stronger push into online sales. The fashion sector is in the middle of rapid transformation, with major chains forced to respond to increasingly digital consumers, new forms of competition and pressure to streamline their operations.

In this environment, one of the world’s most powerful fashion companies is moving ahead with deep changes that have a direct impact on its physical store network.

According to Inditex’s financial results, Zara alone closed 52 stores in Spain in just three months. Overall, the group reduced its global network from 5,698 locations in 2024 to 5,562 in 2025, a drop of 2.39 per cent.

New model: fewer stores, bigger and more high-tech

Despite the wave of closures, Inditex is accelerating its shift towards larger, modern flagship stores with additional services. In Zaragoza, the company has shut down key outlets such as Zara and Oysho in Puerto Venecia and Massimo Dutti on Paseo Independencia, based on a strict assessment of sales per square metre.

At the same time, it is planning a new Zara flagship store in the same area for 2026, along with a 286,000 square metre logistics hub in Malpica that will be one of the group’s five largest worldwide.

The new model goes beyond traditional retail space, incorporating cafés, leisure areas and digital services. Similar concepts have already been rolled out in Athens and Madrid with Zara Man and the Zacaffé format.

Which brands are most affected

The restructuring is not limited to Zara. Store closures are affecting several chains across the group:

  • Oysho: 34 stores
  • Zara Home: 21
  • Massimo Dutti: 20
  • Stradivarius: 10
  • Bershka: 1

Only Pull&Bear showed net expansion, opening two new outlets. Inditex says the aim is to “optimise stores in order to strengthen their productivity”.

Sales edge up as online gains ground

Despite the large number of closures, Inditex reported a 1.5 per cent increase in sales, reaching 8.27 billion euro in the first quarter of 2025. Net profit came in at 1.305 billion euro, a marginal rise of 0.3 per cent compared with 2024.

These results are clearly weaker than the previous year, when revenue grew 7.5 per cent and profit 9 per cent. The slowdown reinforces the need for restructuring.

By 2026, Inditex plans to increase its total store floor space by 5 per cent, while prioritising landmark locations and e-commerce, which is emerging as a key driver of growth.

The future: fewer stores, more experience

The group’s strategy underlines that its future does not depend on the sheer number of stores but on their ability to attract and retain customers. The aim is for physical outlets to become spaces where fashion, technology and experience come together.

With a presence in 214 markets, Inditex believes it still has “significant growth opportunities” despite a smaller network. The new retail landscape demands adaptation to a more digital and demanding customer base, and the group is already in the midst of redefining its global strategy.

 

Source: The Guardian

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