According to media reports, some international companies that had announced the closure of their branches in Russia, against the backdrop of the Russian special military operation in Ukraine, are seriously considering resuming their business in Russia again.
Reports indicated that the Spanish company “Inditex”, which owns famous brands such as “Zara”, “Massimo Dutti”, “Bershka”, “Pull & Bear”, “Stradivarius” and “Oysho”, may seriously consider reopening some stores. Prussia in June.
And the Russian newspaper “Izvestsa” quoted the director of retail stores (Knight Frank Russia), which indicated that there is no specific date for the opening yet, but the company wants to return to sales during the summer, which will allow stores to sell the remaining goods and start the working season. With the new fall collection.
Reports indicated that the company will have to give up some unprofitable points (sales positions), as prices may rise in reopened stores due to increased logistics and transaction costs.
“It makes sense to open in phases with the backlog of inventory sold. Retailers are also planning to close low-margin stores, and we think the overall reduction will be at the level of 100-150 stores.”
Marina Malakatko
Head of Retail at CORE.XP Consulting
It is noteworthy that the company “Inditex” owns 500 stores in Russia, employing more than nine thousand people.
The company’s management announced in early March a temporary suspension of its activities in Russia, explaining its decision not to be able to “guarantee the continuity of operations,” according to the allegations.