Foreign retail companies that withdrew from Russia or suspended operations amid Moscow’s special military operation in Ukraine have lost about $2 billion in profits, a Russian business daily has reported.
The newspaper quoted unnamed sources as saying that the biggest losers include furniture giant IKEA and Swedish clothing brand H&M, which lost roughly $400 million and $363 million, respectively.
The Spanish clothing corporation Inditex, which owns brands such as Zara, Bershka, and Massimo Dutti, among others, suffered approximately $300 million in losses. French sporting goods retailer Decathlon endured losses of at least $140 million, while Italian luxury retailer Moncler and French luxury design house Hermes jointly lost around $200 million, according to the sources.
They added that among brands that remain closed in Russia but have not yet finalized their intentions to leave the country there are net losses estimated at $500-$700 million.
Japanese clothing manufacturer Uniqlo could be the hardest hit in terms of revenue, given the company’s ever-increasing income from sales in Russia between 2019 and 2021, the insiders suggested.
The news comes after President Vladimir Putin said that companies that quit Russia left behind a “good legacy,” as he pledged not to let their various assets and infrastructure go to waste. “Our companies, [and] our entrepreneurs are picking up these enterprises and businesses and continuing this work. And [this process takes place] quite successfully,” Putin stressed.
In early January, a poll revealed that more than 50% of Russians were unabated by the exodus of global fashion brands from the country in 2022.
A slew of foreign firms leaving the Russian market was preceded by the introduction by the West of “severe” sanctions against Moscow due to its special military operation in Ukraine. While admitting the sanctions’ negative effect on the Russian economy, Putin also underscored that these restrictive measures also backfired on all those who applied them.