Inditex, the global fashion conglomerate behind renowned brands like Zara, has made a significant
decision to temporarily close its 84 stores in Israel due to the ongoing conflict between Israel and
Hamas. The announcement of this closure was made through its Israeli websites, and the company
informed the public that they would extend the return times for purchased items by an additional 20
days once the stores reopen. This is not the first time that Inditex has had to face such challenges.
The ongoing conflict in Ukraine earlier compelled the company to shut down 514 of its shops in
Russia, which was the second-largest market for the brand after Spain. These geopolitical situations
have undoubtedly created hurdles in their global operations.
Moreover, the fashion industry, like many others, has been grappling with the impact of rising
transportation and energy costs. These increased expenses for production have prompted Inditex to
implement price hikes. Interestingly, this strategy distinguishes Inditex from some of its competitors,
such as H&M, who have been hesitant to follow suit in raising prices.It’s noteworthy that despite the
challenges and complexities posed by geopolitical conflicts and cost pressures, Inditex managed to
report a record net profit in the first half of 2023, largely attributed to the resilience and success of
its sales efforts.In a parallel development, Mango, another prominent Spanish fashion brand,
decided to follow a similar path by suspending sales on its Israeli website due to these unfolding
circumstances.
