E Point Perfect

H&M to wind down Russian business


H&M is the latest retailer to close down its Russian business for good
H&M is the latest retailer to close down its Russian business for good
// H&M is to wind down its Russian business
// The retailer will reopen its stores temporarily to sell off remaining stock in the country

H&M is to temporarily reopen its Russian stores as it seeks to sell off remaining stock before exiting the country for good.

H&M chief executive Helena Helmersson said: “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.”

The fashion giant, which has traded in Russia since 2009, had “paused all sales” in the country at the beginning of March Vladimir Putin’s invasion of Ukraine.

The retailer said it was not focused on a “responsible wind down” of its operations and will support its Russian staff in “the best possible way” over the coming months.

READ MORE: H&M reveals plans for 240 store closures

It will temporarily reopen stores to sell off its remaining inventory in Russia.

The entire wind down is expected to cost H&M two billion Swedish Krona (£161 million). The full amount will be included as one-time costs in its third quarter results.

H&M is understood to have more than 150 stores in Russia, which was the fashion retailer’s sixth-biggest market. It accounted for about 4% of group sales in the fourth quarter of 2021.

Earlier this month, Ikea revealed that it would permanently exit Russia.

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