H&M lays out plans to permanently exit Russia

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H&M has followed in the footsteps of Nike and Ikea in permanently withdrawing from Russia following the invasion of Ukraine.

H&M Moscow

H&M will temporarily reopen stores in Russia to sell leftover stock

The retailer initially paused all sales in the region on March 2 but has now taken the decision to remove itself completely.

H&M has operated in Russia since 2009.

The retailer said it “regrets that the business cannot continue under the current circumstances and that many colleagues are affected as a consequence”.

It said its next steps would be to ensure a responsible “wind down” of operations in addition to supporting its employees there.

H&M will temporarily reopen its physical stores in Russia as part of the process to sell leftover stock.

The entire winding down is expected to cost the fashion group SEK2bn (£160m), of which SEK1bn (£80m) will have a cash-flow impact.

H&M chief executive Helena Helmersson said: “After careful consideration, we see it as impossible given the current situation to continue our business in Russia.

“We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication. Furthermore, we wish to thank our customers for their support throughout the years.”