H&M Group, which paused all sales in Russia earlier in March this year, has decided to initiate a process of winding down the business in the country. The retailer has run operations in Russia since 2009, and has cited "current operational challenges and an unpredictable future" as the key factors behind the decision.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia. We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication. Furthermore, we wish to thank our customers for their support throughout the years”, said Helena Helmersson, CEO H&M Group.?
As part of the winding down process, the intention is to temporarily reopen physical stores for a limited period of time to sell remaining inventory in Russia. The entire wind-down is expected to lead to costs for the H&M group amounting to a total of approximately €190m (2 BSEK). The full amount will be included as one-time costs in the results for the third quarter 2022. a