The fashion industry begins scaling back Russia business after invasion


By AGENCY
  • Style
  • Thursday, 03 Mar 2022

Beyond concerns about the conflict, doing business in Russia has become very difficult for foreign companies. Photo: Bloomberg

Burberry Group Plc suspended shipments to Russia, joining UK fashion retailers Asos Plc and Boohoo Group Plc in reining in operations in the region after the invasion of Ukraine.

The luxury brand has paused all shipments to Russia until further notice due to "operational challenges,” a Burberry spokesman said Wednesday (March 2). The brand has two stores and one concession in Russia, which have remained open for now.

Asos said it has halted sales in the country as it is "neither practical nor right” to continue doing business there, according to a statement.

Read more: To fashion a positive impact, young people are now sewing their own clothes

The company has a website in Russia but no operations on the ground. Asos had already suspended sales in Ukraine immediately following the Russian invasion, a spokesperson said.

The retailer didn’t disclose the size of its operations in the countries.

Asos’s rival Boohoo, which also sells to Russian shoppers via its website, suspended its operations in the country at the end of last week, according to a company spokesperson.

Boohoo doesn’t have any sales channels in Ukraine.

A number of prominent US brands, including Apple Inc and Nike Inc, previously announced plans to halt product sales in Russia.

Beyond concerns about the conflict, doing business in Russia has become very difficult for foreign companies. Sanctions are mounting, the ruble is plunging and a number of courier services have stopped deliveries to the country.

Read more: Fashion and bio-sourced materials: 'You could possibly eat the final product'

The suspension of shipments isn’t expected to have a big financial impact on the UK. retailers.

Burberry’s exposure to Russia is less than 1% of sales, according to the company’s spokesman.

Asos’s sales in Russia and Ukraine likely make up less than 5% of sales, estimates Tony Shiret, analyst at Panmure Gordon. Asos declined to comment.

Boohoo’s Russian operations are a slice of 5% revenue coming from a group of countries that predominantly includes Australia, New Zealand and Canada, according to the company’s results. – Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

fashion , trends , Ukraine , Russia , luxury fashion

   

Next In Style

'Pinkflation' is causing the price of women's fashion items to soar
How fashion designer Giorgio Armani had to flee wildfires on a Sicilian island
Making your own DIY tinted lip balm using food colouring can be a hit or a miss
Guys, look to quirky cool fashion accessories to style up your outfit
Hanae Mori, fashion designer for films and Japan's empress, dies at 96
Malaysian celebs Ning Baizura and Dolla front Jovian Mandagie’s fashion campaign
Fashion adapts to life beyond the pandemic with functional going-out apparel
Michael Jordan 'Last Dance' jersey to be auctioned in September
Malaysian designer Khoon Hooi heads abroad: 'I want to dress more celebrities'
How to perform nail slugging, a new beauty trend that's taking TikTok by storm

Others Also Read