Inditex, the parent company of Zara, has announced the closure of 3,785 stores around the world in response to the “uncertain situation” caused by the Coronavirus pandemic.

The Spanish-headquartered fashion group - which also owns retail brands including Bershka, Pull & Bear and Massimo Dutti - announced that the stores in 39 markets would be closed with immediate effect following a slump in group sales of 24 per cent in the first two weeks of March.

All stores in China would remain open with exception of 11, the company said, following the guidelines of local health authorities.

A statement read: “The solidity of the group's 2019 earnings and strong balance sheet puts us in a strong position for tackling the challenges emerging in 2020.

“Although it is too soon to quantify the future impact of the COVID-19 outbreak on our business operations, Inditex has the utmost faith in its business model and its strong financial position, supported by the flexible and responsive decision-making capabilities of the company and all of its professionals.”

The group’s full year results for 2019 showed that net sales were up eight per cent to €28.29 billion, while like-for-like sales growth was 6.5 per cent.

Online sales surged 23 per cent over the period to €3.9 billion, accounting for 14 per cent total sales.

However, store and online sales were down 24 per cent between 1 March and 16 March as the pandemic widened. Online sales continue and the group’s supply chain will function normally.

The group also said it had invested €1.2 billion in growing its integrated store and online platform, with the omnichannel model now present in 7,469 stores in 96 markets and 44 global e-commerce fulfilment platforms.

Pablo Isla, executive chairman of Inditex, called for “calm at every level", adding that he had “total faith” in the decisions being taken by the health authorities.

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