Traditional retail stores are rapidly disappearing, leaving empty mall storefronts and shuttered stand-alone locations around the world. Rising operating costs, along with the continued growth of e-commerce, have changed consumer expectations and made it increasingly difficult for many brick-and-mortar stores to remain profitable.
According to CoreSight research, retailers in many sectors announced 67% more closings in 2025 than the previous year.
But consumers haven’t stopped shopping for their favorite brands; They’re just changing the way they shop. These changing habits have created a significant difference between the number of closings and new store openings in the industry.
Now, many major labels are shrinking their global footprints for surprising reasons, and they all belong to the same parent company.
The Spanish retail giant behind some of the world’s most popular fast-fashion brands, including Inditex (Industria de Diseño Textil, SA), Zara, Zara Home, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Lefties, operates 974 online marketplace platforms as well as thousands of physical stores.
Inditex ( IDEXY ) closed 132 stores at the end of the quarter with 5,527 locations through Oct. 31, 2025, 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 implementing 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 a seamless physical integration with the online experience that allows us to respond quickly to fashion trends and offer the latest collections, across multiple formats,” Inditex CEO Oscar Garcia Mesiras said on the earnings call.
-
Zara: 60
-
Zara House: 27
-
Drag and Bear: 12
-
Massimo Datti: 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 have also opened new locations with the closures, but the company’s store count has not increased.
Despite the shutdown, Inditex’s strategy appears to be paying off. Total sales rose 2.7% to €28.2 billion ($32.82 billion), driven primarily by strong customer satisfaction with its in-store and online experiences.
“Store sales have been strong, online sales have been great, so it’s been a great performance all around,” said Groca Garcia-Tapia, director of investor relations at Inditex.
More store closings:
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.
Preliminary fourth quarter results show continued momentum, with the Autumn/Winter collection delivering a 10.6% increase in sales from November 1 to December 1.
According to Capital One Shopping, global online shopping revenue is expected to exceed $6 trillion in 2024 and reach $10 trillion by 2033. Still, most consumers prefer personal shopping, as global e-commerce sales will account 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 drive growth and keep customers engaged.
“Stores are a valuable asset,” EY Global Consumer Senior Analyst John Copestake told CX Dive. “If you’re considering cutting or eliminating store footprints because of the growth of online and AI purchasing, you could be missing an important move.”
Forbes consumer expert contributor Kate Hardcastle also noted that, “One of Inditex’s key strengths is its omnichannel integration, combining physical stores with a strong online presence. This seamless shopping experience has been key to keeping Inditex at the forefront of fashion retail, particularly in how consumers drive their shopping demands.”
Despite Inditex’s resilience, the impact of the widespread shutdown is still significant. The retail industry is the largest private sector employer in the United States, contributing $5.3 trillion to annual GDP and supporting more than one in four American jobs, which total 55 million workers, according to the National Retail Federation.
“Empty storefronts are becoming an increasingly common sight, and falling commercial property values are common,” said Shmuel Shayowitz, President and Chief Lending Officer of Approved Fund. “For consumers, the result is fewer choices, less access to personalized shopping, and, in some cases, higher prices due to less competition.”
Related: Why Your Favorite Retail Store Is Going Out of Business
This story was originally published by TheStreet on December 9, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
