“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,” the French luxury fashion house said in a LinkedIn post.
French multinational Kering, whose brands include Gucci, Saint Laurent, Bottega Veneta, and Boucheron among others, has two shops and 180 employees, which the company will continue to support. Richemont, which also owns Dunhill, Jaeger-LeCoultre, Montblanc, Piaget, and Van Cleef & Arpels among other brands, has around a dozen directly operated stores, mostly in Moscow. It said in a statement it had suspended commercial activities in Russia on Thursday, March 3, after stopping Ukraine operations on February 24, the day Russia launched its invasion.
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.
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