Inditex, the company behind popular brands like Zara, reported its highest-ever sales of €28.2 billion for the first nine months of its fiscal year ending October 31, 2025. This marked a 2.7% increase compared to the same period last year. At the same time, the firm closed 132 stores around the world. These steps show how Inditex is adapting to changes in the retail world.
Record Sales Despite Store Closures
Inditex achieved strong sales growth even as it shut down stores. The company closed 132 locations between October 2024 and October 31, 2025. These closures mainly affected six brands: Zara lost 60 stores, Zara Home 27, Massimo Dutti 23, and Oysho 18. Despite this, Inditex still runs 5,527 stores across 97 countries. This approach lets the company cut back on weak spots while keeping a large presence. It goes against the idea that physical stores are dying out. Instead, Inditex aims for a smart mix of online sales and key physical shops.
The strategy highlights a careful review of performance. Company leaders focus on stores that bring in steady customers and profits. This pruning helps the business stay healthy amid shifting shopping habits. Shoppers today expect quick access to products, whether online or in person. Inditex’s moves prove that fewer, better stores can support record revenues.
Changes in Store Strategy
Over the past 10 years, customers have pushed for smooth experiences that link online and in-store shopping. Inditex meets this by closing small, low-traffic neighborhood stores. These spots often fail to draw enough visitors or make enough money. In their place, the company invests in bigger flagship stores. These large outlets feature tools like real-time stock checks and easy digital payments.
This shift prioritizes quality over having stores everywhere. Rivals such as H&M, Uniqlo, and Nike follow the same path. They too close many small shops and upgrade a select few into standout locations. Inditex’s plan reallocates money from unprofitable sites to high-impact ones. As a result, the overall store network becomes more efficient and customer-friendly.
Big Investments Drive the Shift
Turning stores into modern hubs requires heavy spending. Inditex plans to invest about €900 million each year for the next two years. The money goes toward renovations, new technology, and better supply chains. Flagship stores now act as places for shopping and experiences, cutting reliance on lots of small outlets.
Online sales jumped 77% in fiscal 2024, thanks to features like in-store pickup and same-day delivery. Bigger stores also serve as centers for online orders, blending the two worlds. This setup speeds up operations and cuts costs. Inditex’s leaders see these changes as key to staying ahead in a fast-moving market.
Global Impact and Job Outlook
The store closures spread across Europe, Asia, and the Americas. Spain and Western Europe likely saw the most hits, given their high number of stores. Inditex has not shared exact addresses, but the decisions come from strict checks on profits. The company employs 161,281 people globally, with 86% in retail or support roles.
Inditex expects its workforce size to stay steady. It plans to move staff from closed stores to online operations and remodels. Still, details on these shifts remain under wraps, creating some worry for workers. This focus on redeployment shows a commitment to its people during change.
Signs for the Retail Industry
Inditex’s actions point to bigger trends in retail. Shoppers now want more than just buying goods—they seek engaging experiences. The company uses AI in supply chains for exact inventory control. Customer surveys help tweak products quickly. Factors like changing currencies add pressure, but Inditex stays flexible.
As other brands copy this model, Inditex stands out with its mix of closures, top stores, and online strength. Keeping profits high and customers loyal will decide its success. In retail, those who adapt best will thrive. Inditex’s path offers a clear lesson for the industry.
Sources:
Modaes Global – Inditex adjusts with 132 stores less in one year, with Zara Home and Oysho leading the way
Inditex Official – FY2025 Nine-Month Earnings Report (Q3)
Reuters – Retail consolidation trends across major fashion retailers
Inditex Official – FY2024 Annual Results and Sustainability Report
FastCompany – Zara stores closing: Locations join doomed list as Lefties rises
McKinsey & Company – The future of retail: Consumer behavior and store strategy