H&M Group to Leave Russia After Temporary Store Reopening in August

H&M Group is “winding down the business” in Russia after pausing sales in the region in early March following the country’s attacks on Ukraine, according to a Monday (July 18) press release.

The retailer intends to temporarily reopen physical stores in August to sell the remaining inventory in Russia, the release stated.

“The company regrets that the business cannot continue under the current circumstances and that many colleagues are affected as a consequence,” the release stated. “The focus now is to ensure a responsible wind down of operations and support all colleagues concerned in the best possible way over the coming months.”

Russia was H&M’s sixth-biggest market before it closed shop there in the spring, and the company was increasing its store count in the region even as it was cutting back on physical stores in many other markets, Reuters reported.

H&M Group has been in Russia since 2009 and has 170 physical stores there, which it rents and operates.

Inditex and Adidas are among other retailers that have ended their Russian operations since the attacks began in Ukraine, according to Reuters. TJX and Polish fashion brand LPP have sold their Russian stores to other retailers.

In June, H&M said it expects to raise prices in the coming year following a report that showed its shoppers didn’t mind paying full price. The Swedish company’s net sales increased by 20% during the six-month period from Dec. 1, 2021, to May 31, 2022.

Read more: Shoppers Embrace H&M’s Full Prices, Driving Higher Sales

H&M Group CEO Helena Helmersson said at the time that H&M would most likely raise prices through the remainder of 2022, although those increases would vary from market to market.

As PYMNTS noted earlier this year, it’s unusual — in the age of inflation — to hear a retailer talk of shoppers paying full prices at a time when many stores are offering discounts.

See more: Consumers Pay Full Price for Brands That Make Them Happy, Tommy Bahama Parent Says

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