Core Insights - ZARA HOME is closing its last store in Hangzhou, following the closure of its last store in Changsha, indicating a significant contraction in its presence in China [1][3] - The Inditex Group, which owns ZARA HOME, is also reducing its operations in China, having closed all stores of its other brands like Pull&Bear, Bershka, and Stradivarius since 2021 [3] Summary by Sections ZARA HOME Store Closures - The last ZARA HOME store in Hangzhou will close soon, following the closure of the Changsha store, marking a reduction in the brand's footprint in China [1] - ZARA HOME had at least five stores in Hangzhou, but now only one remains, with closures attributed to high rental costs [1] Inditex Group's Business Adjustments - Inditex Group has been closing stores across its brands in China, with ZARA alone reducing its store count by 81 in the past year [3] - The financial performance of Inditex in Asia has been declining, with the revenue share from this region dropping from 23.2% in 2020 to 15.7% in 2024 [3]

Core Viewpoint - ZARA HOME is closing its last store in Hangzhou and has already announced the closure of its last store in Changsha, indicating a significant contraction in its operations in China [1][3]. Group 1: Store Closures - ZARA HOME's last store in Hangzhou will close soon due to high rent after the lease expiration [1]. - The Changsha store will cease operations on June 29, 2023, due to "business adjustments" [1]. - ZARA HOME has also closed stores in other cities like Shanghai, Nanjing, and Shenzhen, reducing its presence to just over 10 stores in China [3]. Group 2: Inditex Group's Business Adjustments - Inditex Group, ZARA HOME's parent company, has been closing stores across its brands in China, including Pull&Bear, Bershka, and Stradivarius since 2021 [3]. - ZARA has also seen a significant reduction in its store count in China, with 81 stores closed in the past year [3]. Group 3: Financial Performance - Inditex Group reported a 1.5% year-on-year revenue increase to €8.27 billion and a 0.8% net profit increase to €1.3 billion in Q1 of the 2025 fiscal year, but these figures fell short of analyst expectations, leading to a stock price drop of over 6% [3]. Group 4: Market Competition - ZARA HOME faces intense competition in the Chinese market from brands like Miniso, Muji, and other fast-fashion brands, which may lead to further store closures in the future [5].