Fashion retail giant H&M is undertaking steps to completely shut down its business operations in Russia, the company announced on Monday, joining other major global brands like Nike and McDonald’s who have exited the country following its invasion of Ukraine.
H&M’s decision to leave Russia comes four-and-half months after it suspended its retail operations in the country.
In a press release, the retail group’s CEO Helena Helmersson said it was “impossible” for the company to continue operations in Russia due to the “current situation.”
As part of its exit plan, H&M will temporarily reopen stores in Russia to sell off all remaining inventory.
Shutting down operations in Russia will cost the company 2 billion Swedish Krona ($191 million) and have a 1 billion Swedish Krona ($96 million) impact on the company’s cash flow.
H&M now joins a growing list of major global brands that have halted or shut their businesses in Russia since its invasion of Ukraine, which was followed by a multitude of economic sanctions from the West. Last month, Nike announced it was exiting the Russian market, three months after suspending retail operations. Among other fashion and apparel brands, Spain’s Inditex—the owner of H&M rival Zara—told shareholders last week that it was monitoring the situation in Russia where its stores remain “temporarily closed.” In March, Uniqlo’s parent company, Fast Retailing, also halted sales in the country citing “a number of difficulties.” Several other marquee global brands like McDonald’s, Coca-Cola and Starbucks have also exited the country.
Nike Is The Latest Global Brand To Exit Russia Completely (Forbes)
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