Nearly 30% have exited the retail market, Moscow newspaper reports
Nearly a third of foreign retailers have left Russia following Western sanctions over the conflict in Ukraine, Russian daily Izvestia reported on Thursday.
A total of 27% of companies that leased premises in shopping centers decided to terminate their activities in Russia, consulting company CORE.XP (formerly CBRE) told Izvestia. A further 51% of foreign brands suspended business operations and 22% are undergoing restructuring.
Among those who announced their departure are H&M Group (which operates COS, Monki, Weekday, & Other Stories, H&M home, Arket and other brands), Nike, Starbucks, Victoria’s Secret, Lush and Lego. Among the brands currently undergoing restructuring are Levi’s (JNS), and L’Occitane (Л’Окситан), Izvestia says.
The list of companies that have suspended operations includes Inditex (Zara, Massimo Dutti and others), MAC, Jo Malone, Decathlon, Adidas, Puma, Hugo Boss and Swarovski.
According to Izvestia, some retailers that stayed have reported a 40% increase in revenues.
Russia’s trade ministry says that the majority of foreign companies are interested in resuming their activities as soon as possible and are working through various options. According to Izvestia, Chinese, Turkish and Iranian companies are negotiating their entry into the Russian retail market, while domestic brands are also increasing their presence.
For more stories on economy & finance visit RT’s business section