More than a year after the start of the conflict in Ukraine, Leroy Merlin has announced that it wants to sell all of its stores in Russia to “local management”.
By NJ with AFP
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© NATALIA KOLESNIKOVA / AFP
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After 18 years of presence in Russia and more than a year after the start of the war in Ukraine, Adeo, the parent company of Leroy Merlin, has indicated “its intention to cede control” of all of its stores to a ” local administration”. This operation “should make it possible to preserve the jobs of the 45,000 employees and to perpetuate the activity of the company”, argued, in a press release, the French group, owned by the Mulliez family. The DIY equipment retail giant is one of the largest foreign employers in Russia.
This operation will be subject to the approval of the competent authorities in Russia. The press release specifies that work has been underway “for several months in compliance with the applicable regulations”.
A decision to stay in Russia that drew criticism
In addition to the 113 Leroy Merlin stores located in Russia, representing between 18 to 20% of the company’s turnover, the Mulliez family also owns some 230 Auchan stores, according to figures from mid-2022. In Russia, the latter make it possible to achieve more than 10% of the firm’s sales. While many French and Western groups have disengaged from Russia since the start of the war, the Mulliez family’s choice to stay in the country had drawn criticism. Last year, Adeo explained that it was maintaining its activity in Russia, but that it was suspending all new investment, citing the risk of “expropriation” in the event of withdrawal, a threat waved by the Russian authorities.
In mid-February, the head of Ukrainian diplomacy Dmytro Kouleba thus accused Auchan of having become a “weapon in its own right of Russian aggression” after the publication of an investigation by the daily The world that the group had contributed to Moscow’s war effort.