Inditex leaves its fifteen stores in Argentina and Uruguay in the hands of a local franchisee

Inditex ceases to work Argentina and Uruguay, but will continue to offer its products in both markets. For this, the Galician textile multinational reached an agreement with the Panamanian group Regency, to which it will transfer brand management tomorrow and Zara Home in both markets. The Galician company assures that the aim of the business is to standardize the management model with the one applied in most of the Latin American market, where it also operates in a franchise regime.

Actually, Regency Group is a long-term partner of the Galician group, since it has been doing business with the Inditex brands in Colombia, Peru, Panama, Ecuador and Paraguay for more than 25 years.

With this latest contract, the Panamanian multinational takes over the management of the company fifteen shops Zara and Zara Home in Argentina (where there are eleven stores) and Uruguay (with four). And they will integrate more into their staff thousands of workers which Inditex had on its payroll in both countries. Sources at the Galician group explain that there is no date yet for the transfer of management to be completed, but that customers will not notice the difference, as the new owners will maintain “their quality fashion offering and their commitment to excellent customer service”. customers from both countries. And they explained that “Inditex’s commercial teams will continue to be closely linked to the activities of their brands in Argentina and Uruguay, as is the case in all countries in the region where similar agreements exist.”

custom collections

Rather, they remembered Zara’s offer own collection for the southern hemisphere since entering the Argentine market, a decision that was made in order to try to adapt its commercial offer and general catalog trends to the tastes of that market. For this, it has, at its headquarters in Spain, specific design, product development and commercial teams for this region, “working in parallel with those for the northern hemisphere”.

For its part, the Regency Group is a business conglomerate that is present in thirteen Latin American countries, where it manages more than 400 stores and employs more than 5,000 people.