H&M has announced it will leave Russia but will temporarily reopen its stores there to sell off its leftover stock.
The world’s second largest clothing retailer said it was “impossible” to continue its business in Russia because of the Ukraine war.
The decision comes after the Swedish company halted all sales in Russia in March, shortly after Russian troops invaded Ukraine in late February.
H&M is said to have more than 150 stores and around 6,000 employees in Russia.
It has not given a date or timetable for its exit.
“After careful consideration, we consider it impossible to continue our business in Russia given the current situation,” said CEO Helena Helmersson.
“We are deeply saddened by the impact this will have on our colleagues and very grateful for all their hard work and dedication. In addition, we would like to thank our customers for their support over the years.”
- Which companies are withdrawing from Russia?
H&M is one of many brands that have pulled out of Russia in recent months. Many have said that post-invasion sanctions imposed by Western allies have made trade unprofitable and impossible in some sectors.
Others have taken a moral stance on the war or are responding to consumer pressure to act.
Before ending sales, Russia was H&M’s sixth-largest market, accounting for around 4% of group sales in the fourth quarter of 2021.
The fashion giant had been expanding its presence in Russia since beginning operations there in 2009, including opening stores under other brand names in its portfolio, Weekday and & Other Stories. So far, Russian shoppers have been able to order Monki and Cos clothing online.
H&M predicts that the departure from Russia will cost the group around 2 billion Swedish crowns.
The retailer’s stores in Ukraine have been closed for some time due to concerns about the safety of customers and employees.
Add Comment