H&M, a Swedish clothing company, has decided to leave the Russian market completely, reads the statement on the brand’s website.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia. We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication. Furthermore, we wish to thank our customers for their support throughout the years”, says Helena Helmersson, CEO of H&M Group.
As part of the winding down process, the intention is to temporarily reopen physical stores for a limited period of time to sell remaining inventory in Russia, the statement says. The entire wind-down is expected to lead to costs for the H&M group amounting to a total of approximately 2 billion Swedish Kronas (~€190 million). It is unclear what the company’s plans regarding their current employees in Russia will be.
H&M entered the Russian market in 2009 and has been the country’s second largest clothing retailer after Inditex. The H&M Group also includes the H&M Home, Monki, COS, Weekday, & Other Stories, Arket, and Cheap Monday brands.