Global retail company closes 132 stores across several brands

Traditional retail stores are rapidly disappearing, leaving empty mall storefronts and shuttered freestanding locations around the world. Rising operating costs, combined with the continued growth of e-commerce, have changed consumer expectations and made it increasingly difficult for many brick-and-mortar stores to remain profitable.

Accordingly CoreSight ResearchRetailers across many industries have announced 67% more closures in 2025 than the previous year.

But consumers haven’t stopped shopping from their favorite brands; they’re just changing the way they shop. These changing habits have created a significant difference between the number of closed and newly opened stores in the industry.

Many major brands are now reducing their global footprint for some surprising reason, and they are all owned by the same parent company.

Inditex (Industria de Diseño Textil, SA), the Spanish retail giant behind some of the most popular fast fashion brands worldwide, including Zara, Zara Home, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Lefties, operates thousands of physical stores in 97 markets and 214 online platforms.

Inditex (IDEXY) closed the quarter with 5,527 locations, having closed 132 stores year-to-date as of October 31, 2025. nine-month fiscal 2025 earnings report. The closures are part of the company’s strategy to streamline operations and increase long-term profitability.

Inditex has been carrying out a large-scale expansion and modernization plan over the last two years; It is investing €900 million ($1.05 billion) annually to improve its logistics capabilities, renovate existing units and move or open stores in more strategic, high-traffic areas.

“The end result of our unique approach is the seamless integration of the physical with the online experience, allowing us to quickly react to changing fashion trends and deliver the latest collections across multiple formats,” Inditex CEO Óscar García Maceiras said in an earnings call.

• Zara: 60

• Zara’s House: 27

• Pull&Bear: 12

• Massimo Dutti: 23

• Stradivarius: 6

• Oysho: 18

Bershka and Lefties were the only brands that increased their footprint by opening four and 10 new stores, respectively. However, some of Inditex’s other brands opened new locations after the closure, but the number of the company’s stores did not increase.

Despite the closures, Inditex’s strategy appears to be paying off. Total sales increased 2.7% to €28.2 billion ($32.82 billion), driven by strong customer satisfaction across both in-store and online experiences.

“In-store sales are strong, online sales are great, so an excellent performance all around,” said Inditex Investor Relations Director Groka García-Tapia.

More Store Closings:

The company has also seen increasing adoption of self-checkout technology; some flagship stores handle almost 90% of transactions through automated kiosks; At Zara, this rate was 30% in the first quarter of 2025.

Results at the start of the fourth quarter show continued momentum; Autumn/Winter collections achieved a 10.6% increase in sales from November 1 to December 1.

Global online shopping revenue exceeded $6 trillion in 2024 and is expected to reach $10 trillion by 2033. Capital One Shopping. Still, most consumers prefer in-person shopping as worldwide e-commerce sales account for only 19.9% ​​of total sales in 2024.

That’s why companies like Inditex continue to invest in their physical stores by innovating, optimizing and integrating digital tools to drive growth and keep customers engaged.

“Stores are valuable assets,” said EY Global Senior Consumer Analyst Jon Copestake with CX Diving. “If you were considering reducing or eliminating store footprints because of the rise of the internet and the artificial intelligence etc. If you’re buying it, you may be missing an important trick.”

Forbes Consumer Expert Contributor Kate Hardcastle He also noted: “One of Inditex’s greatest strengths is its omnichannel integration, which blends brick-and-mortar stores with a strong online presence. This seamless shopping experience is critical to keeping Inditex at the forefront of fashion retail, especially at a time when consumers are increasingly demanding more flexibility in the way they shop.”

Despite Inditex’s resilience, the effects of widespread closures are still significant. The retail industry is the largest private sector employer in the United States, contributing $5.3 trillion in annual revenue. GDP and we support more than one in four jobs in the United States (55 million workers total). National Retail Federation.

“Empty storefronts are becoming an increasingly common sight, and declining commercial property values ​​are becoming normal,” he said. Approved Financing Shmuel Shayowitz, President and Chief Lending Officer. “For consumers, this means less choice, reduced access to in-person shopping and, in some cases, higher prices due to reduced competition.”

Related: Why is your favorite retail store closing?

This story was first published by . Street First appeared on December 9, 2025 Retail section. Add TheStreet at: Preferred Source by clicking here.