The owner of Zara plans to close as many as 1200 stores worldwide as the clothing retailer tries to boost online sales during the economic decline caused by the COVID-19 pandemic.

The company reported a net loss of US$464 million during the pandemic. 

Closures are expected to take place in mainly Asia and Europe as the company shifts its focus to a strong online presence. 

It is understood that the 107 stores in the UK are less likely to be significantly affected.

The company stated “headcount will remain stable”, with staff offered roles in other jobs such as dispatching online purchases.

The total store count will fall from 7,412 to between 6,700 and 6,900 after the reorganisation, which will also include the opening of 450 new shops.