Russians visited H&M’s Moscow flagship store (HMb.ST.) last Wednesday (30 novembre), just before the No.2 fashion retailer worldwide closes all its stores in Russia. This comes after a stock sale that lasted nearly four months.
H&M shut down its stores after Russia sent thousands to Ukraine. In August, H&M reopened its stores to sell surplus inventory.
The crowds were smaller on Wednesday but those who persevered received full shelves and half price reductions.
Anastasia, a 29-year-old, stated that H&M and other brands are closing was a sad thing, but that she believes that life must go on.
She stated that she was sure that something exciting and new would emerge. It is not necessary to dwell on negative things.
Russian companies have been subject to pressure from politicians and the public for them not to do business with them. Many foreign outlets immediately suspended operations after the troops arrived. However, they did not announce a permanent withdraw.
H&M lost 2.1 billion dollars in the third quarter to cover its Russian business winddown. H&M was the first major European retailer to start layoffs . H&M announced Wednesday 1,500 job losses as a result softening demand and rising inflation.
According to Russian officials, H&M is selling its assets and expects the buyer to be either a Russian entity or a company from a friend. This is one of the countries that have not placed sanctions on Russia.
H&M leased 170 physical stores in the country and managed them direct.
Russia’s TASS news agency reported last week that around 80% of H&M stores had closed in Russia.
H&M representatives confirmed that all Russian stores will close Wednesday, but declined to comment further.
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