Spanish textile group Inditex has confirmed the sale of its business in the Russian market to UAE-based Daher Group. The sale, which was initially announced in October, is subject to government approval and is expected to preserve a substantial number of jobs. Inditex previously had a network of 515 shops in Russia, with approximately 9,000 employees, but suspended its operations in response to Russia’s invasion of Ukraine. The agreement includes the transfer of lease contracts occupied by Inditex’s retail chains, such as Zara and Massimo Dutti, to the acquiring group. Despite the sale, Inditex has not ruled out the possibility of returning to the Russian market in the future, and a potential collaboration through a franchise agreement has been included in the deal. The buyer, Daher Group, is an Emirati conglomerate that owns the Dubai Mall and is a franchisee of Inditex in North Africa and the Middle East. Russia accounted for approximately 8.5% of Inditex’s net operating income and around 5% of its total sales. The company estimates that the provision of €216 million recorded in the first half of the current financial year sufficiently covers the impact of the termination of its business activities in Russia. In addition to Inditex, other fashion companies such as H&M, Mango, and Tous have also made decisions regarding the Russian market, with some opting for closures or handing over their physical shops to local franchise partners.

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Confirmation of Inditex’s sale of its Russian business
Details of Inditex’s agreement with Daher Group