(Yicai Global) Jan. 8 -- Spain’s Inditex, one of the world’s largest apparel retailers and the firm behind fast fashion label Zara, is closing all the bricks-and-mortar outlets of three of its brands in China due to poor performance and will instead focus on e-commerce sales, Chinese business media outlet Jiemian reported today.

All stores of its Bershka, Pull&Bear and Stradivarius brands should be shut by the middle of this year, the report said, citing an industry insider.

Galicia-based Inditex remains optimistic about the potential for continuous growth in China, it said. It will rely on live streaming sales, social messaging app WeChat’s mini programs as well as online platforms to promote its e-commerce business. It will concentrate on updating its technology to provide consumers with the best shopping experience.

Inditex’s three brands entered China years ago but were unable to penetrate the market. Many consumers think they offer cheap, discounted goods of average quality, the report said, citing online services giant Meituan.

Most foreign fashion brands, with the exception of Zara, Sweden’s H&M and Japan’s Uniqlo, have failed to take off in China due to consumers’ fussy tastes and the diverse offerings of domestic brands.

Also, shopping habits have changed with the arrival of the Covid-19 pandemic and shifted online. E-retailers can track consumer trends faster through the use of data and face no inventory pressure.

Bershka, which targets urban youth, has 11 stores in China. It will close its Beijing and northeastern Shenyang province shops later this month and the ones in Shanghai by mid-April.

Pull＆Bear, which focuses on US popular culture, has not yet been informed of the plan, an employee said. The brand has over 10 stores in China.

Women’s clothing fashion brand Stradivarius withdrew from some areas in the country a long time ago.

Editor: Kim Taylor