H&M to fully exit Russia amid ‘impossible’ situation

Sweden’s Hennes & Mauritz is taking steps — including temporarily re-opening its stores — to completely shut down its business operations in Russia.

Citing “current operational challenges and an unpredictable future,” the fast-fashion giant on Monday announced it has decided to start the process of winding down its business in Russia. H&M’s decision comes after the retailer temporarily closed its 170 stores in Russia at the beginning of March due to the invasion of Ukraine. And it follows similar moves by other major brands, including Nike, McDonald’s and Starbucks.

As part of the winding-down process, H&M plans to temporarily reopen its stores in Russia for a limited period of time to sell its remaining inventory. The company has operated in Russia since 2009. It is H&M's sixth-biggest market.

“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” said Helena Helmersson, CEO, H&M Group.  “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.”

H&M’s exit from the country will cost the company 2 billion Swedish Crowns (approximately $191 million). The amount will be included as one-time costs in the retailer’s third-quarter results.

“The focus now is to ensure a responsible wind down of operations and support all colleagues concerned in the best possible way over the coming months,” the company stated.