Russia: H&M closes all branches and triggers customer rush

With the start of the Russian war of aggression in Ukraine, numerous companies withdrew from the Russian market, including the Swedish fashion chain H&M. All 170 branches in the country had been temporarily closed since the beginning of March, but the company announced in mid-July that it intends to completely withdraw from the Russian market. But not without bringing the stocks in Russia to the customer again beforehand.

While the furnishing group Ikea committed itself to a purely online sale, H&M is opening a few branches in Russia for the last time this week – triggering a real rush. Photos posted online show hundreds of customers waiting in long lines outside stores. “H&M is closing, that’s why we’re here. I’ll buy anything there is to buy,” said a customer named Irina. Ekaterina, another customer, sees the closure in connection with the Ukraine conflict – without naming the war, because draconian penalties are threatened in Russia. “The reason why this is all happening is terrible. Everything else is meaningless – including how we will manage without H&M.”

H&M is closing 170 stores in Russia

The fashion group confirmed the sale in Russia, which should take place in most branches in August and September, until “most of our stock items have been sold”. “After long deliberations, we see it as impossible in the current situation to continue our business in Russia,” said H&M Managing Director Helena Helmersson, explaining the final closure of the stores in Russia. This also affects 6,000 employees who are no longer employed by the textile company. According to media reports, the business closure will cost the company around 190 million euros. It is still unclear what will happen next with the 170 branches. According to the Russian Ministry of Industry and Trade, they should be bought by a Russian company or a foreign company whose country has not imposed sanctions on Russia.

With the final closure, Ikea and H&M join a long chain of international companies that will also turn their backs on Russia. In mid-July, Nike, Cisco and Lego announced that they were leaving the Russian market. The American retail group TJX, which operates the “TK Maxx” branches in Europe, and the Polish chain LPP, which sells the Reserved label, among other things, announced that they would close their business in Russia.