The owner of Vans and The North Face refocuses on wholesale deliveries in Russia
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The American clothing and footwear manufacturer VF Corporation (which owns the brands Vans, The North Face, Timberland, etc.) has decided to stop retail sales in Russia and reorient its local division to wholesale sales. About it informed “Kommersant” with reference to the reporting of the Russian structure of VF Corporation LLC “VF CIS”.
According to the CEO of Fashion Consulting Group (FCG) Anna Lebsak-Kleymans, this strategy will reduce geopolitical risks. In this way, the company will be able to avoid being boycotted in other markets due to having its own retail network. At the same time, thanks to this, the company will be able to maintain the popularity of its own brands through representation in multi-brand networks and maintain business momentum.
In addition, VF Corporation already has its own consumers, so there is no need for a retail store to represent the brand, says Evgenia Prilutskaya, Director of Infrastructure Retail and CORE.XP tenant representation. Running a retail store is also being challenged by rising rental costs, she said. Thanks to the reorientation to wholesale deliveries, VF Corporation shifts the responsibility for the quality of the goods to the manufacturer, and for the sale to the wholesale buyer.
The retail chain of Vans stores began to develop in Russia in 2020, when VF Corporation bought out the stores operating under this brand from A3 Retail Group franchisees. By the end of 2022, there were 12 Vans outlets in Moscow and St. Petersburg, the stores themselves stopped working after the start of a special operation in Ukraine. As a result, online sales and wholesale deliveries were also suspended. At the end of 2022, the revenue of the Russian division of VF Corporation decreased by 50.8% in annual terms, to 1.36 billion rubles. Net loss amounted to 306.97 million rubles. against a profit of 420 million rubles. in 2021
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