H&M Group to exit Russia
H&M Group has announced its plans to initiate a process of "winding down" its business in Russia, due to current operational challenges and an "unpredictable" future.
The group has run operations in Russia since 2009, but in March 2022 paused all sales in Russia due to the war in Ukraine.
In a statement, the company said it regrets that the business cannot continue under the current circumstances and that many of its colleagues will be affected as a consequence.
H&M group hopes to ensure a "responsible" wind down of operations and support all colleagues affected by the decision over the coming months.
As part of the winding down process, the group will temporarily reopen physical stores for a limited period of time to sell its remaining inventory in Russia.
The entire process is expected to lead to costs of approximately £160 million (2Bn SEK), of which approximately £80 million (1Bn SEK) will have a cash flow impact. The full amount will be included as a one-off cost in H&M Group's Q3 2022 results.
Helena Helmersson, CEO of H&M Group, said: “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."