Spanish fashion powerhouse Zara refuted rumors on Tuesday about its withdrawal from the Chinese market, following speculation sparked by recent store closures in various cities across the country.
Some economic analysts believe that the closures are strategic moves by the company to reduce the number of stores while expanding their sizes, but the legend of fast fashion has been shattered as cost-effectiveness now dominates the mass consumer market.
Recently, the news of Zara's sudden store closures in multiple cities in China has been making rounds on major social media platforms. According to the National Business Daily on Tuesday, it was confirmed by Zara's staff that the brand has shut down stores in Huizhou and Dongguan in South China's Guangdong Province, as well as Baoshan district in Shanghai over the past two months.
In particular, the stores located in Huizhou and Dongguan were the only Zara retail outlets in the region, serving customers for more than a decade. Their closure leaves these two cities devoid of physical Zara storefronts.
Zara operated a peak of 183 stores in the Chinese mainland around 2018, per its financial report. However, its staff revealed that only 87 stores are operating now, which indicates that nearly a hundred stores have been closed in the past six years, the National Business Daily reported.
The closures prompted online discussions with some fans of the brand worrying it is planning to withdraw from the Chinese market.
Zara denied on Tuesday that it plans to withdraw, stating that the brand is constantly optimizing and upgrading its stores by opening larger ones and equipping them with efficient digital technology, according to a report by the Beijing News.
