Russian shoppers weaken case for companies to stay

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Consumer goods giants are cutting back in Russia. They make way for local rivals and Asian competitors to gain market share. The effect of sanctions on disposable incomes, however, makes the financial logic less compelling. says dasha_reuters

Uniqlo, the apparel maker owned by Fast Retailing, said on March 10 that it would temporarily suspend operations in Russia, after founder Tadashi Yanai had previously said it wanted to give Russians access to affordable clothes.

Nestlé said on March 9 it suspended investment in Russia after its earlier decision to stop advertising there. A day earlier, Unilever said it had suspended all imports and exports of products in and out of Russia. Both Unilever and Procter & Gamble said they would keep selling essential products in Russia, but they are ending any new capital investments and no longer advertising in the country.

L’Oréal also said on March 8 it was suspending Russian investment and shutting its domestic shops as it condemned the war in Ukraine.The logo of Uniqlo is seen outside its store in Moscow, Russia March 10, 2022. REUTERS/Maxim Shemetov - RC2QZS9QQ8BQ

 

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