Zara returns to Ukraine after two year closure
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Economics
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Zara returns to Ukraine after two year closure

ZARA
Source:  Financial Times

Zara, the world's largest chain of clothing stores, is preparing to reopen its outlets in Ukraine at the beginning of April. The company closed them immediately with the beginning of the full-scale invasion of the Russian Federation.

What is known about Zara's reopening in Ukraine

Inditex (the Spanish owner of Zara) plans to open 50 of 84 stores in Ukraine. As noted by the Financial Times, the company informed its landlords about this.

The resumption of work will begin with 20 stores, particularly in Kyiv's shopping centres.

Inditex stressed that the company will prioritize the safety of employees and customers and adapt its plans to market conditions. Some Ukrainian workers have already been sent to study in Poland to prepare them for returning to work.

Why did Zara stop working in Ukraine?

Inditex closed its 84 stores in Ukraine, which included brands Zara, Pull & Bear, Massimo Dutti and Bershka, on Feb. 24, 2022, the day of a full-scale Russian invasion.

The company has since stopped delivering goods to the country but has continued to pay taxes and wages to its 1,000 Ukrainian employees. Inditex also kept its leases.

The Spanish group has approximately 5,700 stores in over 90 countries. Inditex has exited Russia, once its second-largest market after Spain, by selling about half of its 500 stores and closing the rest. However, the company does not rule out the possibility of returning to Russia "if the situation changes."

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