Zara, the world’s biggest fashion group, is preparing to reopen its stores in Ukraine, marking a significant moment in the country’s new normality despite the conflict with Russia. Inditex, Zara’s Spanish owner, has informed local landlords that it will start reopening its shops in early April after nearly two years of closure.
The return of Zara Clothing signifies the resurgence of businesses in Ukraine amidst the aftermath of Russia’s invasion. Other companies, including H&M, are also making a comeback after shutting their doors two years ago.
Zara Clothing to Return in Ukraine with Reopening of 50 Stores
Inditex, the Spanish company that owns brands like Zara, Pull & Bear, Massimo Dutti, and Bershka, is currently planning to reopen 50 out of its 80-plus stores in Ukraine. These brands were all shut down on February 24, 2022, when Vladimir Putin announced a full-scale invasion of Ukraine. Despite the closures, Inditex continued to pay taxes and wages for its 1,000 Ukrainian employees. It also maintained rental contracts during the closures.
Last October, Ukraine’s foreign minister expressed efforts to bring back several retail brands, including Ikea, H&M, and Zara. H&M successfully reopened its stores in Ukraine in November of the same year.
In 2022, McDonald’s also resumed operations in Ukraine. Ukrainian Foreign Minister Dmytro Kuleba and US Secretary of State Antony Blinken visited a McDonald’s joint in Kyiv in September. Kuleba emphasized that having McDonald’s back in the country signifies confidence and marks a positive message for Ukraine’s recovery.
In the spring of 2022, businesses like retailers, restaurants, and bars started reopening their doors in Ukraine. H&M, which had eight shops before the war, resumed operations in November 2023.
Gradual Store Reopening Strategy in Ukraine
The Spanish group, with over 5,700 stores worldwide across 90 countries, will gradually reopen its stores in Ukraine. Initially, they will start with 20 stores, including three Zara outlets located in Kyiv shopping centers.
Eventually, the total number of reopened stores across the country will reach 50, but Inditex couldn’t specify the duration of this process. The company emphasized prioritizing the safety of both employees and customers while adjusting plans according to market conditions. Ukrainian staff members have already undergone training in Poland to prepare for their return to work. Out of the 34 remaining closed shops, those in south and east Ukraine directly impacted by the war remain shut, as commercial operations are prohibited in these areas by the Ukrainian government.
Inditex has exited Russia, once its second-largest market by store numbers after Spain. It sold about half of its 500 shops to the Daher Group of the United Arab Emirates and closed the rest. However, the company has retained the option to return to Russia if the situation changes.
Retail Association of Ukraine Reports Drop in Revenue Due to Impact of War
According to a study published last year by the Retail Association of Ukraine, revenue at retail chains decreased from $37 billion in 2021 to $30 billion in 2022, despite inflation running at 26 percent.
The association noted that retailers faced challenges such as the occupation of large areas, looting, shelling of peaceful cities, constant air raid alarms, and blackouts. Despite these difficulties, retailers managed to adapt to the situation.
Inditex, which owns 84 stores in Ukraine, including Zara, Pull & Bear, Massimo Dutti, and Bershka brands, closed its stores on February 24, 2022, the day of Russia’s full-scale invasion. Since then, it has halted merchandise shipments to the country but continued to pay taxes and wages to its 1,000 Ukrainian employees, most of whom have been at home without work. Inditex also maintained rental contracts with landlords during the store closures, although the terms have not been disclosed.
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