The fashion industry begins scaling back Russia business after invasion

  • 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.

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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.

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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

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fashion , trends , Ukraine , Russia , luxury fashion


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