Retail closures in Russia increase as its military offensive in Ukraine goes on

Live updates: follow the latest news on Russia-Ukraine As the world isolates Russia because of its military offensive in Ukraine, US and European retailers have been rapidly shutting down operations across Russia. This has sent scores of Russians racing to buy imported consumer goods on fears of a plunging rouble and sanctions. Companies that have not yet joined the ban are drawing unwelcome attention across social media, with hashtags #BoycottMcDonalds and #BoycottCocaCola trending on Twitter. Last year, McDonald’s generated about 9 per cent of its revenue from Russia and Ukraine, and Coca-Cola’s Swiss-based bottler, Coca-Cola HBC AG, took about 21 per cent of its volume from Russia and Ukraine. Here is a roundup of businesses that have paused products and closed up shop. After Ukraine Vice Prime Minister Mykhailo Fedorov tweeted a letter to Apple chief executive Tim Cook on February 25, pleading with the company to pull out of Russia, Apple closed stores and paused product sales in the country. It has not yet shut down its local App Store. Fast-fashion retailer Asos said that it was halting sales in Russia. In 2021, Russia and Ukraine accounted for about 4 per cent of sales revenue. The company suspended sales in Ukraine following the invasion. UK online clothing seller Boohoo Group has suspended operations in Russia. British fashion house Burberry Group has halted shipments to Russia, but stores there are still open. Video-game publisher Electronic Arts has announced it is stopping the sales of games, content and virtual currency bundles in Russia and Belarus. French luxury brand Hermes International said it will temporarily close its stores in Russia and pause all commercial activities. Swedish clothing retailer 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. On March 3, home-furnishing company Ikea announced that it was pausing 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. 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. French luxury group LVMH is temporarily closing its 124 stores in Russia, AFP reported. The company has 3,500 employees in Russia, according to WWD. 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 business Nike 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. Samsung Electronics has suspended product shipments to Russia, halting its sales and services in the country. The South Korean technology company is monitoring the complex situation, the company said in an emailed statement to Bloomberg. The company also said it is donating $6 million, including $1m in consumer electronics products, to humanitarian efforts in the region. Swiss watch company Swatch Group told Bloomberg it will be closing its stores in Russia. Sports apparel company Under Armour has stopped all shipments into sales channels in Russia.

Retail closures in Russia increase as its military offensive in Ukraine goes on

Companies that have not yet joined ban feel heat on social media