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Foreign Retailers Lost $1.5Bln After Leaving Russian Market, Media Reports

Stacks of $100 bills at the Bureau of Engraving and Printing Western Currency Facility in Fort Worth, TexasInternationalIndiaAfricaMOSCOW (Sputnik) — The foreign retail consumer brands which withdrew from the Russian market have lost about $1.5 billion in profit as a result, Russian newspaper reported on Thursday, citing business consultants in the know. The $1.3-1.5 billion loss estimate specifically concerns the non-food retailers which officially announced their withdrawal from Russia; with the addition of losses borne by the foreign companies which have not officially withdrawn from Russia but temporarily shut their stores in the country, the true figure might be closer to $2 billion, the newspaper said. H&M Group has reported $363 million in losses in 2022 resulting from the withdrawal from the Russian market, Inditex has reported over $300 million, Ikea almost $400 million and Decathlon $140 million, the newspaper said, citing the companies’ financial reports. Luxury segment retailers Hermes and Moncler have together lost over $200 million as a result of withdrawing from Russia, the consultants cited by the newspaper estimated. EconomyProfit Impossible: Adidas Posts €724 Mln Loss in Q4 Amidst ‘Geopolitical Challenges’8 March, 10:32 GMTJapanese brand Uniqlo, which has not announced its withdrawal but closed its shops in Russia for about a year, is likely bearing significant losses, the consultants were cited as saying. Over 180 foreign companies have limited their activities in Russia and about 15 have announced their plans to leave the market since the start of Russia’s special military operation in Ukraine. After Moscow launched its special military operation in Ukraine in February 2022, a slew of Western businesses responded by suspending or downsizing their operations in Russia. Most experts agree that this is due to logistical and financial disruptions caused by the Western sanctions against Russia.

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