Inditex suspends its activity in its more than 500 stores in Russia, its second market after Spain

The Spanish companies Inditex (Zara, Bershka, Pull&Bear, etc.) and Tendam (Cortefiel) have reported this Saturday that they come from to “temporarily suspend” its activity in Russia due to the war with Ukraine, in a constant trickle of multinationals leaving the country.

The two companies have made this decision public this Saturday, which affects both their physical stores (more than 500 in the case of Inditex and about 50 for Tendam) like the “online” channel.

Inditex has decided to close its 502 stores in Russia, its second market after Spainwith more than 9,000 employees.

“Inditex informs that in the current circumstances cannot guarantee continuity of operations and commercial conditions in the Russian Federation and temporarily suspends its activity in the 502 stores (of which 86 are Zara) and in the country’s ‘online’ channel,” he said in a statement sent to the National Market Commission of Securities (CNMV).

Stores that operate on a rental basis

Russia constitutes around 8.5% of the group’s global net operating profit (Ebit). The company founded by Amancio Ortega has highlighted that all stores operate on a rental basisso the investment is not relevant from the financial point of view.

Inditex has assured that it continues to have as a priority its staff of more than 9,000 people, with which a special support plan will be developed from this moment on. On Russian soil, Inditex operates under the banners Bershka, Pull&Bear, Zara, Stradivarius, Oysho, Massimo Dutti, Zara Home and Uterqüe.

The departure of Russian companies after the invasion of Ukraine further cracks its economy

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For their part, the managers of Tendam have indicated that this suspension of its operations in Russia “will be carried out guaranteeing maximum protection” of its 400 employees in the country.

The firm – owner of the trademarks Cortefiel, Women’secret, Springfield and Pedro del Hierroamong other- anda closed its franchises in Ukraine last week.

The textile company has shown its willingness to “collaborate in everything that may be necessary” with the Spanish authorities and international NGOs in the context of this conflict. In Russia, there are about 130 Spanish companiesaccording to ICEX data, although this situation does not affect everyone equally.

Companies leaving Russia

Inditex and Tendam thus follow in the footsteps of other large companies who have cut off their business with Russia in recent days, either in protest against the invasion of Ukraine, due to supply problems or to comply with the sanctions imposed by other governments against Moscow.

24 hours – Spanish companies leaving Russia – Listen now

Within the textile sector, the Swedish Hennes and Mauritz (H&M) announced the temporary suspension of its sales in Russia due to the war with Ukraine, a decision that brands such as Nike, Adidas, Mango and Burberry have also already adopted.

So have Volkswagen, Toyota, Ikea, Disney, Apple, BP or H&M. The textile company Mango has decided to close, temporarily, its stores and its online platform in Russia, as well as paralyzing the shipment of new merchandise. Other companies in our country say that they have had no choice but to stop their activity. This is the case of Anecoop, a Valencian fruit and vegetable company that already suffered the sanctions of 2014.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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