In response to Russia’s invasion of Ukraine on February 24, three prestigious luxury brands from France, LVMH, Hermes, and Chanel, have made the decision to temporarily close their shops in Russia. This move follows the actions of several other multinational companies that have suspended their activities in Russia due to the ongoing conflict.
Hermes, known for its high-end fashion and accessories, operates three stores in Russia, including one located in the prestigious Gum department store on Red Square. With 60 employees in the country, the brand has decided to halt its operations in Russia due to the “major uncertainty and complexities” involved in operating during this conflict. Additionally, Hermes has ceased internet shopping and will no longer provide deliveries to Russia.
Chanel, another iconic luxury brand, currently has 17 stores in Russia. The company has also cited the uncertainties of the conflict as the reason for suspending its operations in the country. Along with closing its stores, Chanel has put a pause on internet shopping and deliveries to Russia.
LVMH, the parent company of renowned brands like Louis Vuitton and Dior, has announced the closure of its 124 stores in Russia starting from March 6. In a show of solidarity, the group has also donated 5 million euros to support the International Committee of the Red Cross (ICRC).
Hermes, which had plans to expand in Russia by opening a store in Saint Petersburg this year, has now postponed its expansion due to the ongoing conflict. The decision to temporarily close their stores and halt all commercial activities was made on March 4.
The impact of the war in Ukraine extends beyond the humanitarian crisis. It has caused significant disruptions to supply chains and trading conditions, leading many multinational companies to suspend their activities in Russia. Intel, Airbnb, ExxonMobil, Apple, Boeing, and Ford are among the notable companies that have joined the ranks.
The closure of luxury stores in Russia serves as a stark reminder of the dire consequences of the conflict and the challenges faced by companies operating in the region. As the situation continues to unfold, the duration of these suspensions and the long-term effects on the fashion industry and the broader business landscape in Russia remain uncertain.
Here are two useful links for further information:
BBC News: Luxury brands close Russian stores amid tension over Ukraine
Reuters: Luxury giants LVMH, Hermes to close stores in Russia after Ukraine invasion
