Russia's invasion of Ukraine has entered its 10th day and the former is looking increasingly isolated from a host of governments sanctions and major tech and retailers shutting shop in the region.
After the Russian invasion of Ukraine, US and European tech and retail giants 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.
Here is a roundup of retail businesses that have paused product shipments or closed up shop.
Big Tech company Apple Inc has closed stores and paused product sales in Russia after UKraine Vice Prime Minister Mykhailo pleaded with the company to pull out of Russia.
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.
UK online clothing seller Boohoo Group Plc has suspended operations, while fashion house Burberry Group Plc too halted shipments to Russia. However, Burberry still has stores open in country. Another British retailer Marks & Spencer Group Plc suspended shipments to its Turkish franchisee’s Russian business.
Swedish home-furnishing giant IKEA had paused 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. Another clothing retailer from Sweden H&M (Hennes & Mauritz) 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.
French luxury brand Hermes International said it will temporarily close its stores in Russia and pause all commercial activities. Another luxury group from France LVMH is temporarily closing its 124 stores in Russia, AFP reported. The company has 3,500 employees in Russia, according to WWD.
Home-furnishing giant Ikea . 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.
Kering, 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."
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.
