The world’s second-biggest fashion retailer, H&M said it had decided to close down its business in Russia. According to CTV News, “After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” Chief Executive Helena Helmersson said in a statement. The shut down is expected to cost $191.3 million US dollars, impact 6.000 employees, and affect 170 physical stores in the country and it’s ecommerce sales channels. Several retailers, including Zara (owned by Inditex) and Adidas have halted sales in the country, while U.S.-based fashion retailer TJX has exited.
As brands, continue to be hit supply chain issues and Russia’s now legalized ‘parallel imports,’ which allow retailers to import products from abroad without the trademark owner’s permission. What are your thoughts on US-retail operations, should they stay or exit Russia?
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