It has been revealed that Inditex, which owns Zara, Bershka and Pull & Bear, plans to shut all of its stores in Venezuela.

A deal between the retailer and local partner Phoenix World Trade, which took over operation of the Venezuelan stores in 2007, has come under review – according to a report by Reuters.

"Phoenix World Trade is re-evaluating the commercial presence of its franchised brands Zara, Bershka and Pull & Bear in Venezuela, to make it consistent with the new model of integration and digital transformation announced by Inditex," the company told the news agency. "The five stores which remain open… will cease to operate in coming weeks".

Inditex has been scaling back smaller stores across the world and instead focussing on larger flagship stores. The company expects 1,200 closures by the end of the year.

700 Inditex stores will close their doors in Europe, while 100 will be permanently shut across the Americas. There will also be 400 closures elsewhere around the world.

The company reported a disappointing financial year in March, with overall sales dropping by 28 per cent to €20.4 billion in 2020, despite online sales surging by 77 per cent to €6.6 billion.

Retail Systems has reached out to Inditex for comment on the store closures.

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