Kommersant: foreign brands that left Russia could lose $ 2 billion
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Foreign brands that have decided to leave the Russian market, in total, suffered losses in the form of lost profits in the amount of more than $1.3 – $1.5 billion, and taking into account the suspended stores, the amount could reach $2 billion. About this informed Kommersant, citing sources that accompanied the closure of the business of a number of networks.
It is specified that the Spanish group Inditex (Zara, Bershka, Pull & Bear, Massimo Dutti), the Swedish H&M and the IKEA chain of stores for home goods suffered the most significant losses. According to the publication, they account for more than $1 billion in losses.
As Dmitry Vodyannikov, a partner at Yakov & Partners (formerly McKinsey), noted, the departure from Russia did not greatly affect the global network business, since sales in Russia accounted for 3-5% of total revenue.
According to NF Group (formerly Knight Frank Russia), after the start of the special operation in Ukraine, about 180 foreign brands decided to limit their work in Russia, about 15 announced plans to completely leave the market.
According to BGP Litigation’s Dispute Resolution and Bankruptcy Practice Advisor Ruslan Petruchak, the main reasons for the withdrawal of almost half of foreign companies were the existing restrictions on foreign trade operations with Russia, changes in the exchange rate, failures in logistics, as well as difficulties in making transfers. Only for some companies, such a decision was associated with the need to minimize reputational risks.
In early January, State Duma Speaker Vyacheslav Volodin declaredthat 75.9% of foreign companies remained in Russia. In his opinion, this speaks of the business’ faith in “good prospects for the development” of the Russian economy. Volodin noted that foreign companies that have left the market “suffer billions of dollars in costs.”
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