Global retail company closes 132 stores across several brands

Traditional retail stores are disappearing rapidly, leaving behind empty mall storefronts and shuttered stand-alone locations across the globe. 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 shops to remain profitable.

According to CoreSight Research, retailers across multiple sectors announced 67% more closures in 2025 than in the previous year.

But consumers haven't stopped shopping their favorite brands; they're simply changing how they shop. These shifting habits have created a significant discrepancy between the number of closures and new store openings in the industry.

Now, several major labels are reducing their global footprints for a surprising reason, and they all belong to the same parent company.

Inditex (Industria de Diseño Textil, S.A.), 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 across 97 markets as well as 214 online platforms.

Inditex closes 132 stores across multiple brands

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

Over the past two years, Inditex has been executing a large-scale expansion and modernization plan, investing €900 million ($1.05 billion) annually to upgrade logistics capabilities, renovate existing units, and relocate or open stores in more strategic, high-traffic areas.

"The end result of our unique approach is the integration of the physical with the online experience in a seamless manner that permits us, across multiple formats, to rapidly react to changing fashion trends and offer the latest collections," Inditex CEO Óscar García Maceiras said in an earning call.

Inditex store closures by brand

• Zara: 60
• Zara Home: 27
• Pull&Bear: 12
• Massimo Dutti: 23
• Stradivarius: 6
• Oysho: 18

Bershka and Lefties were the only brands to increase their footprint, opening four and 10 new stores, respectively. However, some of Inditex's other brands also opened new locations along with the closures, yet the company's store count didn't grow.

Inditex boosts in-store sales despite shutdowns

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

"Store sales have been strong, online sales have been great, so all-around an excellent performance," said Inditex Director of Investor Relations Groka García-Tapia.

More Store Closures:

• 124-year-old retail chain announces rare store closure
• Macy's announces unexpected closure ahead of holiday season
• Walmart announces unexpected store closure

The company has also seen growing adoption of its self-checkout technology, with some flagship stores reaching nearly 90% of transactions through automated kiosks, a significant jump from 30% at Zara in the first quarter of 2025.

Early fourth-quarter results show continued momentum, with Autumn/Winter collections delivering a 10.6% rise in sales from November 1 through December 1.

The rise of online shopping and store closures worldwide

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

For that reason, companies like Inditex continue to invest in their physical stores by renovating, optimizing, and integrating digital tools to boost growth and keep customers engaged.

"Stores are valuable assets," said EY Global Consumer Senior Analyst Jon Copestake to CX Dive. "If you were to consider cutting or eliminating store footprints because of the rise of online and the rise of AI buying, etc., then you may be missing a significant trick."

Forbes Consumer Expert Contributor Kate Hardcastle also noted that, "One of Inditex's major strengths is its omnichannel integration, blending physical stores with a strong online presence. This seamless shopping experience has been critical in keeping Inditex at the forefront of fashion retail, particularly as consumers increasingly demand flexibility in how they shop."

Retail closures pose broader economic challenges

Despite Inditex's resilience, the impacts of widespread closures are still significant. The retail industry is the largest private-sector employer in the U.S., contributing $5.3 trillion to the annual GDP and supporting more than one in four U.S. jobs, which totals 55 million workers, according to the National Retail Federation.

"Vacant storefronts are becoming an increasingly common sight, and declining commercial property values are the norm," said Approved Funding President and Chief Lending Officer Shmuel Shayowitz. "For consumers, the fallout means fewer choices, diminished access to in-person shopping, and, in some cases, higher prices due to reduced competition."

Other major retail closures:

• Macy's: Plans to shutter around 150 underperforming stores by 2026
• JCPenney: Transferred the ownership of 119 locations in July 2025
• Claire's: Closed nearly 300 U.S. stores after filing for Chapter 11 bankruptcy in 2025
• Victoria's Secret: Has shuttered 30 U.S. locations since the beginning of 2025

Related: Why your favorite retail store is going out of business