What: The franchise operator of Zara, Pull&Bear and Bershka will close all of its stores in Venezuela in the next few weeks.

Why is it important: Phonex World Trade, the Panamanian-based franchise operator, is re-evaluating the brands’ commercial presence in Venezuela to make it coherent with the new digital integration and transformation model announced by Inditex.

The move came as the Venezuelan government increases efforts to draw foreign investment back into the country by effectively ending years of socialist policies. Sieged by U.S. sanctions, the Nicolas Maduro administration has allowed the country to slide into a de facto dollarization since 2019, offering private companies some breathing room to operate.

Inditex entered the Venezuelan market in 1998, first managing the retail stores directly and then under a franchise model. The franchise navigated years of exchange and price controls that often led them to temporarily close stores due to a lack of merchandise.

Zara Stores To Close In Venezuela as Inditex Brands Exit