The world’s leading luxury brands said on Friday that they planned to temporarily close stores and pause business operations in Russia.
French multinational Kering, whose brands include brands as Gucci, Saint Laurent, Bottega Veneta, and Boucheron among others, has two shops and 180 employees, which the company will continue to support. Investment bank Jefferies estimates that Russians account for around $9 billion in annual luxury sales, which is around 6% of Chinese spending and 14% of US spending on luxury goods.
Globally known companies including Apple, Ford, and Shell have condemned Russia’s attack, but some of the announcements on Thursday were more practical, focused on supplies and sanctions as shipping routes closes and governments banned exports to Russia. Home furnishings retailer IKEA said it would close outlets in Russia and Russian ally Belarus, affecting 15,000 workers, and described its shutdowns in non-political terms.
Norway’s $1.3 trillion wealth fund said its Russian assets, worth around $3 billion before the invasion, have now become effectively worthless.TJX Cos, Inc. said on Thursday it would sell its 25% stake in Russian low-cost apparel retailer Familia, which cost it $225 million in 2019. Because of a decline in the rouble and TJX said it may take an impairment charge due to the sale.