War in Ukraine: Luxury Brands Pull out of Russia

By John Jeffay / March 08, 2022 / www.idexonline.com / Article Link

(IDEX Online) - Luxury brands including LVMH, Richemont, Chanel, Kering and Hermes are suspending their operations in Russia, in response to its invasion of Ukraine.LVMH, which owns Christian Dior, Tiffany & Co, Givenchy, Kenzo, TAG Heuer and Bulgari closed all 124 of its outlets on Sunday in Moscow, St. Petersburg and Yekaterinburg, but said it will keep on paying its 3,500 employees.Richemont, owner of Dunhill, Jaeger-LeCoultre, Montblanc, Piaget, and Van Cleef & Arpels, has closed around a dozen directly operated stores, mostly in Moscow. It cited operational challenges and concerns about staff.Chanel said it has closed its stores, suspended ecommerce in Russia and would no longer deliver to the country.Russia has a prominent oligarch class, but in global terms it is a marginal player in the luxury market compared with the US and China.  For retailers the loss of revenue is likely to be a small price to pay, compared to the reputational damage of staying open.Pic shows Van Cleef & Arpel's flagship store in Moscow

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