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Stores shrink as Russians buy the last of H&M and IKEA

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The Associated Press

Associated Press

MOSCOW (AP)—Russians are turning to Western fashion and furniture this week as H&M and IKEA sell off their last Russian inventory and are moving out of Russia after remittances. I am buying up. Army in Ukraine.

Sweden-based H&M and Netherlands-based IKEA suspended sales in Russia after the military operation began and are now suspending operations in Russia. We are trying to take down our clothing and furniture inventory to shrink. The future is unpredictable. IKEA's sales are online only, but his H&M store in Moscow's shopping mall Aviapark had a steady stream of young shoppers on Tuesday.

This clothing store had enough racks and shelves. Nearby stores such as Zara, Oysho, Bershka, Pull&Bear and Uniqlo closed, but New Yorker, Finn Flare, Marks & Spencer and Mango remained open.

"Start looking for Russian brands," said a shopper in his H&M who gave only his first name, Anya, after coming out of the store. Another shopper, who only named Leonid, said he was "extremely hurt" by H&M's closure. ``The good shops are leaving.''

Both companies are laying off staff as they scale back operations in Russia. He said he would, and said he was working on the details to provide continued support in the coming months.

IKEA said in June that many workers would lose their jobs, guaranteeing six months' wages and key benefits. This week, he said there are 15,000 workers in Russia and Belarus, but did not immediately say how many he would lay off.

H&M Group's CEO, Helena Helmersson, said last month, "I am deeply saddened by the impact this will have on her colleagues, and they I am very grateful for the effort and dedication."

Many Western companies pledged to withdraw from Russia after Russia sent troops to Ukraine, took months to scale back operations, and often took stakes in Russian companies. sold. McDonald's has sold his 850 stores to a Russian franchisee his owner and is about to reopen under the name Vkusno-i Tochka. British energy giant Shell and his BP are charging billions to end their investments and holdings in Russia.

Meanwhile, some Western companies remain or partially operate in Russia. For example, French-owned home improvement retailer Leroy His Merlin continues to operate his 112 stores in Russia. Meanwhile, PepsiCo, Nestlé and pharmaceutical company Johnson & Johnson have suspended non-essential sales, supplying essential items such as medicines and infant formula.

H&M said he expects the cost of leaving Russia to reach about 2 billion Swedish kronor ($197 million). rice field. This will be included as a one-time charge in the third quarter. Earnings for the current year.

IKEA said in June that she began looking for new owners for her four factories in Russia and closed purchasing and logistics offices in Moscow, a key Russian ally, and Minsk, Belarus. announced.

Russian President Vladimir Putin has for years pushed for the development and deployment of alternative Russian goods and services to compensate for the loss of Western imports, but H&M and he has taken on new urgency as companies such as IKEA wind down operations.

Determining when Russian stores will close can be difficult. At the famous GUM department store, which occupies Red Square, most of the closed storefronts are still lit, with clerks and security guards inside.