Venezuela: Navigating Uncertainty in a Forgotten Fashion Market

Venezuela opens an uncertain new political stage with the first direct intervention of the United States in Latin America in decades. With the capture of Nicolás Maduro, at the head of a regime surrounded by constant evidence of lack of respect for democratic freedoms, what was once a market that had timidly returned to the international fashion radar inaugurates a cycle with many more unknowns than certainties.

For the time being, several international fashion groups are keeping their few networks of stores (mostly operated by local partners) closed pending further developments. Inditex, among them: the Spanish group’s partner in the country, which operates four franchised stores, yesterday maintained the decision to leave these stores closed for the safety of employees and customers.

The country dawns Monday in the spotlight of global news. Criticism of the military action by the international community and the U.S. opposition has been constant over the past weekend due to the lack of legal coverage of the intervention ordered by U.S. President Donald Trump in a sovereign country. There have also been recurrent warnings of the danger of a roadmap that, for the time being, does not seem clear: the United States wants to guard the country indefinitely, apparently without the support of relevant factions of the Maduro regime and without trusting the opposition to it.

Inditex, which operates in Venezuela with a franchise partner, kept its stores closed yesterday

After a weekend of nervousness, with stockpiling of essential products in supermarkets and gas stations and scarce traffic in the streets, on Sunday Delcy Rodríguez, the country’s vice president, was appointed as head of the government. Trump recognized her, but quickly issued a warning: “If she does not do the right thing, she will pay a very high price, probably higher than Maduro”.

Uncertainty about the impact of the intervention for the Venezuelan economy is also complete, but the starting point is far from propitious for international operators. In October, the International Monetary Fund predicted that the country’s inflation would soar 682% in 2026, after closing 2025 at 269.9%.

After a growth of the Gross Domestic Product (GDP) in 2024, the IMF estimated for 2025 an expansion of the Venezuelan economy of 0.5%, which would escalate to 3% in 2026. However, the lack of transparency of the Maduro regime and the scarce statistics make all information on Venezuela unreliable. Specifically, the IMF warned that projections were hampered by a lack of discussions with Venezuelan authorities, poorly reported statistics, and obstacles in reconciling reported indicators with economic developments.

The lack of transparency of Maduro’s regime and the scarce statistics make all information on Venezuela unreliable

In international fashion, Venezuela had awakened in recent years a certain interest, but always with contained plans. In 2024, Inditex restarted its activity in the country (which it had abandoned three years earlier) with the opening in Caracas of the group’s largest store in Latin America, a 53,000-square-feet Zara flagship store spread over two floors. A year later, Bershka, Pull&Bear and Stradivarius stores were opened in the country by local partner Futura.

This is Inditex’s second attempt in the market, which in 2007, when the country was under the presidency of Hugo Chávez, signed an alliance with the local company Phoenix World Trade to franchise its stores. The group had already had some twenty stores in Venezuela, where the Spanish Tendam and U.S. groups such as Levi’s and Calvin Klein have also operated in recent years.

Along with Inditex, the world’s number two fashion retailer, the Swedish group H&M, also had Venezuela in its sights. Until now, the company’s plans were to land in the country through Hola Moda, the Nordic company’s franchisee in Central America and the Caribbean.

H&M was planning to open its first store in the Sambil shopping center in Caracas, the same location chosen by Inditex for its first store in the country, by the end of 2025, but this has not yet materialized.

H&M planned to return to the country with the local group Hola Moda

Although few in number, Venezuela has some local operators such as the Twins shoe store chain, founded in 1990, which has a dozen stores in the country and a presence in the online channel.

Venezuela is also home to Grupo David, a partner of international brands in several Latin American countries. The company, which has long had its headquarters in Panama, had planned several openings, such as a Victoria’s Secret flagship store and a debut with the Turkish fast fashion chain Waikiki.

In the last year, Grupo David had resumed its expansion in Venezuela with force. The company decided to open its first On store in Venezuela, in addition to carrying the Argentinean brand La Martina, or to operate again with giants such as American Eagle, Samsonite or Karl Lagerfeld.

Another of the local companies that Venezuela saw the birth of was Grupo Sambil. The shopping mall operator opened its first mall in Caracas in the late 1990s, which was a milestone in the modernization of shopping malls that energized Venezuela’s commercial landscape.

Located in the municipality of Chacao (Caracas), the complex has a surface area of 250,000 square meters distributed over five floors and houses more than 500 stores.

Founded in 1958 by Salomón Cohen, Grupo Sambil divides its activity between residential projects, offices, hotels and shopping centers. The group has complexes in Venezuela, the Dominican Republic and Curaçao.

Grupo Sambil is piloted by the third generation of the Cohen family. In 2017, with an already complex economic outlook by then, the company decided to jump into Spain with the opening of its first outlet in Madrid.