Industry Updates

Zara Owner Inditex to Provide Annual Bonuses to Spanish Shop

Published: February 8, 2024
Author: Fashion Value Chain

Inditex, the parent company of Zara, has reached an agreement to offer annual bonuses of 1,000 euros ($1,075) to approximately 28,000 shop employees in Spain for the second consecutive year. Despite challenges in the retail sector, Inditex has committed to providing this one-time payment to its workers, in collaboration with the country’s largest union.

The bonuses will be awarded to nearly all employees working in Inditex stores, contingent upon each store achieving at least 80% of its sales target. This incentive scheme reflects Inditex’s ongoing efforts to support its workforce amidst a challenging economic environment.

In contrast, Swedish retailer H&M has announced plans to shutter 28 stores in Spain and reduce staffing levels, citing stiff competition from Zara and online fast-fashion giant Shein. However, the CCOO union representative emphasized that Inditex’s financial position differs from that of H&M, underscoring ongoing negotiations for improved wages beyond the annual bonus.

The decision to provide bonuses underscores Inditex’s commitment to its employees and acknowledges their contributions to the company’s success, despite broader industry challenges.

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