LVMH, Kering, Hermès, and Chanel Suspend Business in Russia

The world’s top luxury brands have announced that they will be temporarily closing stores and halting business operations in Russia following the recent military actions against Ukraine.

Hermès and Richemont, the holding company behind Cartier, Dunhill, and Jaeger-Lecoultre, were the first to annouce the suspensions followed by Chanel, LVMH, and Kering (Gucci, Saint Laurent, Balenciaga, Bottega Veneta, etc.). Other global retailers joining the list include IKEA, H&M, adidas, and Canada Goose.

Sanctions placed on Russia have made it increasingly difficult for international corporations to conduct business in the country with Visa, Mastercard, and Apple Pay recently announcing suspension of services. Russians currently account for approximately $9 billion USD of yearly luxury goods spending according to a Jeffries report.

“Given our increasing concerns about the current situation, the growing uncertainty and the complexity to operate, Chanel decided to temporarily pause its business in Russia. We will no longer deliver into Russia, we will close our boutiques and we already suspended our e-commerce,” the fashion house said in a post.

“Deeply concerned by the situation in Europe at this time, it’s with regret that we have taken the decision to temporarily close our stores in Russia and pause all our commercial activities from March the 4th evening,” Hermès echoed on LinkedIn.

According to Reuters, LVMH, which will be closing 124 boutiques in Russia starting from this weekend, has pledged to continue paying the salaries of its 3,5000 employees, and Kering announced a similar commitment to its 180 employees in the country. Both conglomerates along with Richemont and L’Oreal have promised to provide financial support for Ukrainian refugees.

In other news, Authentic Brands completes Reebok acquisition from adidas.