As the world continues to isolate Russia for its invasion of Ukraine, U.S. and European retailers have been rapidly shutting down operations across Russia. This has sent scores of Russians racing to buy imported consumer goods over fears of a plunging ruble and sanctions.
Companies that haven’t yet joined the ban are drawing ire across social media, with hashtags #BoycottMcDonalds and #BoycottCocaCola trending on Twitter. Last year, McDonald’s Corp. generated about 9% of its revenue from Russia and Ukraine, and Coca-Cola Co.’s Swiss-based bottler, Coca-Cola HBC AG, got about 21% of its volume from Russia and Ukraine.
Here is a roundup of retail businesses that have paused product shipments or closed up shop.
After Ukraine Vice Prime Minister Mykhailo Fedorov tweeted a letter to Apple Inc. Chief Executive Officer Tim Cook on Feb. 25, pleading with the tech giant to pull out of Russia, Apple closed stores and paused product sales in the country. It hasn’t yet shut down its local App Store.
Fast-fashion retailer Asos Plc said that it was halting sales in Russia. In 2021, Russia and Ukraine accounted for around 4% of sales revenue. The company suspended sales in Ukraine following the invasion.
U.K. online clothing seller Boohoo Group Plc has suspended operations in Russia.
British fashion house Burberry Group Plc has halted shipments to Russia, but still has stores open in the country. Chanel The luxury brand suspended online sales and deliveries to Russia and will close its stores there.
Video-game publisher Electronic Arts Inc. has announced it’s stopping the sales of games, content and virtual currency bundles in Russia and Belarus.
French luxury brand Hermes International said it will temporarily close its stores in Russia and pause all commercial activities.
Swedish clothing retailer Hennes & Mauritz AB has temporarily paused sales in Russia, where the retailer has 155 stores. According to its 2020 year-end report, Russia is the company’s seventh-largest market.
Home-furnishing giant Ikea announced that it was pausing all Ikea-brand retail operations in Russia, export and import in and out of Russia and Belarus, and deliveries from sub-suppliers. For the 15,000 employees affected, it said it was seeking to provide “income stability” for the short term. A statement on the Ikea Russia website said it was suspending sales in stores and online immediately, and that only orders placed and paid for before March 3 will be fulfilled. The company added that its MEGA Family Shopping Centres, which are shopping malls with grocery stores and pharmacies, will be kept open.
Spanish fashion retailer Inditex SA, the owner of Zara, is temporarily closing its shops in Russia and halting online sales. It has 502 stores in the country.
U.K. sportswear retailer JD Sports Fashion Plc said it has ceased business in Russia across both its brand websites and wholesale channels.
The owner of Gucci and other luxury brands said it will temporarily close its directly operated stores in Russia due to “growing concerns regarding the current situation in Europe.”
French luxury group LVMH said it is temporarily closing its 124 stores in Russia, where it has 3,500 employees.
Marks & Spencer
British retailer Marks & Spencer Group Plc suspended shipments to its Turkish franchisee’s Russian business.
Spanish fashion retailer Mango is closing its 55 company stores in Russia, suspending online sales and stopping deliveries to the country. Its 65 franchisees are being allowed to remain open subject to product availability. The company has 800 employees in Russia, according to Reuters.
Footwear giant Nike Inc. is temporarily closing company-owned and operated shops in Russia, but the company told Bloomberg it will continue to pay store employees during the closures. It is also halting e-commerce sales in the country.
The owner of Cartier and Vacheron Constantin watches said it suspended commercial operations in Russia, after earlier stopping business in Ukraine.
Swiss watch company Swatch Group AG told Bloomberg it will be closing its stores in Russia.
Sports apparel company Under Armour Inc. has stopped all shipments into sales channels in Russia.
Original Article: https://www.bloomberg.com/news/articles/2022-03-04/ikea-lvmh-h-m-a-running-list-of-retail-closures-in-russia