Like other multinational companies in Argentina, the Spanish giant in the department store business Inditexowner of the chain zaraannounced that he is leaving Argentina
From the communication department of Zara they confirmed the fact to the communication agency Noticias Argentinas. However, they clarified that the stores of the renowned brand will continue in Argentina under another owner.
The one that acquires the eleven Zara and Zara Home stores in the country is the multinational company Regency Group, which stated that “the 11 Zara stores in Argentina will remain open and the entire workforce will continue without changes.” This company is the same one that previously acquired management of Nike when the North American company decided to leave Argentina.
READ MORE: Falabella: 170 employees will be relocated to other businesses in Córdoba • Channel C
The entrepreneur’s multinational Amancio Ortega Gaona (one of the 20 richest people in the world, with assets valued at US$ 65,000 million), reported that reached an agreement in principle through Regency Group to transfer management of the operations of its brands in Argentina and Uruguay.
As of this agreement, Zara and Zara Home will continue to be present in the region through a franchise agreement managed by Regency. The group, of Panamanian origin, has been operating Inditex brands such as Stradivarius and Bershka for more than 20 years; in addition to Converse, Forever 21, Under Armor and Aeropostale in different parts of Latin America.
The Panamanian giant is present in 13 Latin American countries and has more than 5,000 employees, 400 stores and an annual turnover of US$300 million. With this new addition, the company adds stores (15 new ones) and more than a thousand employees belonging to the Inditex employee payroll.
“When the transaction is complete, they will continue to offer their quality fashion garments and commitment to excellent customer service in both countries.”
Regency Group statement
It may interest you: Announce tax facilities and credit increase for SMEs • Channel C
However, Inditex affirms that the commercial teams will continue to be closely linked to the activity of their brands in Argentina and Uruguay, as is the case in all the countries in the region where similar agreements are operated. In addition, they clarified that neither inflation nor the impact of the war between Ukraine and Russia slowed down Inditex’s profits in 2022.
According to its annual results for January, the Spanish group that owns the management of brands such as Pull and Bear and Massimo Dutti, among others, reached sales of 34.6 billion dollars, which represents an increase of 17.5% compared to 2021 (above of analysts’ forecasts) and also 15.1% more than its previous record of 30,000 million dollars achieved in 2019.
With a business model focused mainly on importing clothing, Zara had found it difficult to operate in Argentina in recent years due to customs fees and taxes.