Zara ready-to-wear stores have closed in several Algerian towns, sparking widespread discussion on social media. Numerous videos are circulating, showing the curtains drawn at stores belonging to the Spanish Inditex group. Other brands owned by the group, such as Pull&Bear, Stradivarius, and Bershka, have also closed their doors.
While speculation is rampant online, Inditex confirmed on Thursday, December 5, that it had closed its stores in Algeria, although it did not provide specific reasons for the closures.
A company source told Reuters that the closure of these stores is "temporary." Despite this, Inditex has no intention of halting operations in Algeria, according to the source.
Inditex operates four brands in Algeria—Zara, Pull&Bear, Stradivarius, and Bershka—across about twenty franchise stores.
When contacted by Reuters for further clarification, Daher, the Emirati group that partners with Inditex to operate its brands in Algeria and other countries in Africa and the Middle East, did not respond.
Why Have Zara Stores Closed in Algeria?
The sudden closure of Zara stores in Algeria has left many questions unanswered. Some social media users attribute it to Algeria’s tax policies and legislation. However, the closure is part of a broader restructuring effort by Inditex.
According to French newspaper Zonebourse, Inditex has already temporarily closed stores in several countries, including Israel and Ukraine. Earlier this year, the brand resumed online sales and operations in Venezuela.
Marc Mauro, a French entrepreneur who promotes the Algerian market on social media, confirmed that the closure of Zara stores in Algeria is not related to local legislation or the business climate. Instead, it is a business decision made by Inditex as part of a global restructuring effort.
“Zara is finished in Algeria, just like Bershka, Stradivarius, and Pull&Bear... Many people are wondering why. It's not the state, taxes, or imports. It's simply an economic decision by Inditex. This company is closing 1,200 stores worldwide,” Marc Mauro explained in a video on TikTok.
Inditex, which operates around 7,000 stores worldwide, including over 1,000 franchises, is the world's largest ready-to-wear retailer, according to The Wall Street Journal.
The Closure Raises Questions About Algeria's Textile Industry
The closure of Inditex stores also casts doubt on a plan announced by Algeria's Trade Minister, Tayeb Zitouni, in April 2023, to manufacture Zara and other Inditex brands at the Algerian-Turkish textile plant in Relizane.
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