Mango to abandon direct sales in Russia and franchise stores

Spanish fashion brand Mango has announced plans to stop direct sales in Russia due to international geopolitical uncertainty. The move will also safeguard the interests of its 800 employees in the country.

The company will franchise its 55 stores to local partners, ceasing all direct sales. In the coming months, Mango will begin to transfer its own stores to different franchise partners, with the first two stores handed over this week, with another 22 between June and July.

The 800 employees of the company-owned stores will be absorbed by Mango’s partners, alongside the commitments with other suppliers in the country. Currently, the firm has 53 franchises in Russia. 

The announcement comes after Mango temporarily suspended its Russian operations in March, including online sales.

At the end of 2021, Russia represented 8% of Mango’s EBIT and was among the company's top five markets. The company has decided to recognise a provision of €20 million due to the impact of the situation in Russia.

In Ukraine, following a "detailed analysis" of the current safety protocols, Mango has began to reopen its stores in response to the requests of both its franchisees and its direct local teams.

In a statement, Mango said: "The health and safety of all Mango employees and partners in the country remains the company’s number one priority, therefore Mango will continually analyse the situation in Ukraine and may review these measures if necessary."