Spanish multinational clothing giant Inditex has sold its Russian business to UAE-based Daher Group, following the approval by the Russian government.
As part of the deal, Daher Group will be opening locations in Russia under the brands Maag, Dub, Ecru and Vilet.
The Group will open new stores in April and May, according to various media reports.
The company, founded by Amancio Ortega, said that the deal will”enable the preservation of a substantial number of jobs generated by the Inditex group in Russia”.
Under the agreement, Daher will operate in Russia under its own brand but if at some future stage, Inditex wishes to return to the country, the deal outlines the possibility of doing so through franchises, according to Bloomberg.
Daher Group will open new stores in April and May, according to various media reports.
The Spanish retailer closed its 502 stores in Russia earlier this year due to the Russia-Ukraine war.
Although prior to the cessation of activity in Russia, the country accounted for approximately 8.5 per cent of Inditex’s net operating income and its sales amounted to around €1 billion – approximately five per cent of total sales,
The value of the deal was not revealed. However, Inditex the provision recorded in its financial statements for H1 2022 sufficiently covers the impact of the termination of its Russian business.
Meanwhile, in Ukraine and Belarus, where the Spanish conglomerate operated with 85 and 13 shops respectively, activity remains suspended.
Inditex is the world’s largest fashion retailer, operating seven concepts – Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home – with 6,460 stores and online sales in 215 markets.
