Zara owner Inditex ceases trading in Russia ‘temporarily’
The Spanish fashion retailer Inditex, which owns Zara, has halted trading in Russia, closing its 502 shops and stopping online sales, the company said.
The Zara owner followed other big western brands which have suspended operations in Russia, following the invasion of Ukraine and the imposition of economic sanctions.
The payments company PayPal shut down its services in Russia early on Saturday, citing “the current circumstances”.
Meanwhile, Samsung has suspended shipments to Russia over “geopolitical developments”, the firm said on Saturday.
Several firms have announced a suspension of activities in Russia, including H&M, Apple and Ikea.
In a statement, Inditex said: “In the current circumstances Inditex cannot guarantee the continuity of the operations and commercial conditions in the Russian Federation and temporarily suspends its activity.”
Russia accounts for about 8.5% of the group’s global earnings before interest and tax, and all the stores operate on a rental basis, Inditex said, adding: “The investment is not relevant from a financial point of view.”
A number of companies have pulled their operations and services in Russia since its invasion of Ukraine. These include:
Retailers
Travel
Carmakers
Drinks industry
Tech, media and entertainment
Luxury goods companies
Manufacturing
Inditex said it would give its workforce of more than 9,000 people a special support plan, without giving any details. The group had said its 79 stores in Ukraine had already been temporarily closed.
Spain’s second-largest fashion retailer, Mango, said on Thursday it was temporarily closing its 120 Russian shops, and Tendam, the third-largest clothing group, said it had taken a similar decision on Saturday.
Adam Cochrane, an analyst at Deutsche Bank
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