A Bleak Outlook For Venezuelan Economy

Big franchises seriously hit by foreign exchange shortage

El Universal:

The franchising sector fears that a restructuring announced by Spanish clothing retailer Zara in Venezuela causes a domino effect in the retail sector as a whole.

Last week, a Zara spokesman said that it will not abandon the Venezuelan market. However, the company acknowledged that at least six stores will be closed in the domestic market. The Spanish company, which operates in Venezuela with a local partner, said that the decision is due to “commercial” reasons.

Sources of the franchising sector said that it has become increasingly difficult to operate this type of businesses in the last few years, particularly due to hindrances to get dollars.

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