Russia races to buy imported goods as retail giant closes ops on Ukraine

Following the Russian invasion of Ukraine, US and European tech and retail giants are increasingly closing operations across Russia. This has sent many Russians in a rush to buy imported consumer goods for fear of a falling ruble and sanctions.

Here’s a roundup of retail businesses that have halted product shipments or closed shop.

Big tech company Apple Inc. has closed stores in Russia and halted product sales after UK Deputy Prime Minister Mykhailo requested the company to exit Russia.

Fast-fashion retailer Asos Plc said it was halting sales in Russia. In 2021, Russia and Ukraine accounted for about 4% of sales revenue. Following the invasion the company suspended sales in Ukraine.

UK online clothing seller Boohoo Group plc has suspended operations, while fashion house Burberry Group plc has also halted shipments to Russia. However, Burberry still has stores open in the country. Another British retailer, Marks & Spencer Group plc, suspended shipments of its Turkish franchise to the Russian business.

Swedish home-furnishing giant IKEA had halted all Ikea-brand retail operations in Russia, exports and imports in Russia and Belarus, and deliveries from sub-suppliers. For the 15,000 employees affected, it said it wanted to provide “income stability” for the short term. Another clothing retailer from Sweden H&M (Hains & Mauritz) has temporarily halted sales in Russia, where the retailer has 155 stores. According to the 2020 year-end report, Russia is the seventh largest market for the company.

French luxury brand Hermes International said it would temporarily close its stores in Russia and halt all business activities. Another French luxury conglomerate LVMH is temporarily closing 124 of its stores in Russia, AFP reported. According to WWD, the company has 3,500 employees in Russia.

Home-furnishing giant Ikea. A statement on Ikea Russia’s website said it was immediately suspending sales in stores and online, and would only fulfill orders placed and paid for before March 3. The company said that its mega family shopping centres, which are shopping malls with kirana stores and pharmacies, will be kept open.

Kering, the owner of Gucci and other luxury brands, said it would temporarily close its directly operated stores in Russia due to “growing concerns about the current situation in Europe”.

Spanish fashion retailer Mango is closing 55 of its company stores in Russia, suspending online sales and halting deliveries in the country. Its 65 franchisees are being allowed to remain open subject to the availability of the product. According to Reuters, the company has 800 employees in Russia.

Footwear giant Nike Inc. is temporarily closing company-owned and operated stores in Russia, but the company told Bloomberg it will continue to pay store employees during the closure. It is also blocking e-commerce sales in the country.