The owner of Zara has announced that it will be closing 1,200 shops around the world, and instead will be focussing more on online shopping.
The Spanish company Inditex, which also has brands like Bershka, Pull & Bear and Massimo Dutti, has seen a 44% decrease in sales during the pandemic.
However while sales from its shops decreased, many of which were closed until 8 June, the company over the years has experienced a surge in online shopping.
Inditex said that it would be absorbing the small shops, the majority of which are in Europe and Asia, and that it would keep the number of its employees stable, as those who work in the shops will be offered alternative work linked to internet shopping.
Updated with reaction by Malta franchise:
PG plc, which operates the franchise of Zara and Zara Home in Malta, in a reaction said that it had understood this new strategy and in fact anticipated this move by investing in its new store in Sliema.