Spanish fashion giant Inditex is reportedly set to close all its Bershka, Pull & Bear and Stradivarius stores in China.
Bershka currently has 34 stores in mainland China, Pull & Bear has 37, and Stradivarius has 22. The stores could be closed as soon as January, WWD reports, citing anonymous sources.
The three brands, which are all around the same price range, entered China back in 2009, and have in recent years faced increasing competition from online rivals.
The brands' official websites and Tmall stores will remain operational in the region, while Inditex’s other brands, Zara, Zara Home, Massimo Dutti and Oysho will retain their physical stores in the region.
The fast-fashion group previously announced plans to close as many as 1,200 smaller stores by 2022 as it looks to focus on larger flagships.
A former salesperson from Bershka’s Grandview Mall store in Guangzhou said the brand has been liquidating its inventory since June 2020 before shutting the store for good in July, according to WWD.
Pull & Bear and Stradivarius then closed their stores in the same location in August and October, respectively.
For the three months to 31 October 2020, Inditex reported sales of 6.1 billion euros, a 14 percent drop in constant currency, though online sales surged 76 percent.
Net income was 866 million euros, down 13 percent in constant currency.
Photo Credits: Flagship Pull & Bear store in Shanghái, courtesy of Inditex