The fashion chain H&M is closing hundreds of branches worldwide (Wikimedia photo)
Russia is not on the way to withdraw from Ukraine, and the giant networks are moving further and further away from it. The global furniture chain IKEA, and the fashion chain H&M made their last inventory sales on Russian soil this week.
Judging by their onslaught on the networks, Russian consumers are going to miss the global networks. H&M And IKEA halted sales in Russia after the start of the war last February, and are now looking to dispose of their clothing and furniture stocks as they wind down operations there.
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IKEA sales are online only, while a store H&M In the mall Aviapark In Moscow this week there was an explosion of Russian buyers who realized that this was their last chance to buy Western fashion. The racks and shelves were well stocked, for the buyers who had already forgotten what it was like to shop at Zara, Barashka, Pull&Bear Uniqloand dozens of other brands that left Russia.
“I will start buying and dressing in Russian brands,” said one of the buyers of H&M, in the name of Anya, to the New York Post, after she left the store. Another shopper, Leonid, said he was “very hurt” that –H&M Closes: “A good store is leaving”.
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Both companies are laying off workers as they scale back business in Russia. H&M It said on Tuesday that 6,000 employees would be affected by the departure and that it was working out the details of providing ongoing support in the coming months.
IKEA said in June that many workers would lose their jobs and it promised six months of wages for them, as well as various benefits. It said this week that it has 15,000 workers in Russia and Belarus, but did not immediately confirm how many would be laid off.
“We are very saddened by the impact this will have on our employees and are very grateful for all their hard work and dedication,” said the group’s CEO H&MHelena Helmerson, last month.
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Meanwhile, some Western companies remain in Russia or operate partially. French home improvement retailer Leroy Merlin is continuing to open its 112 stores in Russia, for example, and PepsiCo, Nestle and drugmaker Johnson & Johnson are also providing essentials such as medicine and baby formula while halting only non-essential sales.
H&M It said that it expects the costs of leaving Russia to reach about 2 billion Swedish kroner ($197 million), which will be included as one-time costs in its third quarter earnings this year.
Ikea announced in June that it would begin looking for new owners for its four factories in Russia and close its procurement and logistics offices in Moscow and Minsk, Belarus, a key Russian ally.
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