MOSCOW (AP) — Russians are snapping up Western fashion and furniture this week as H&M and IKEA sell off the last of their inventory in Russia, moving forward with their exit from the country after it sent troops into Ukraine.
Sweden-based H&M and Netherlands-based IKEA had paused sales in Russia after the military operation began and are now looking to unload their stocks of clothing and furnishings as they wind down operations there, saying the future is unpredictable. IKEA’s sales are online only, while the H&M store at the Moscow shopping mall Aviapark saw a steady stream of young shoppers Tuesday.
Both companies are laying off staffers as they scale down business in Russia. H&M said Tuesday that 6,000 workers will be affected and that it was working on details of offering continued support in the coming months.
IKEA said in June that many workers will lose their jobs and it has guaranteed six months of pay for them, as well as core benefits. It said this week that it has 15,000 workers in Russia and Belarus, but it did not immediately confirm how many would be laid off.
“We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication,” H&M Group CEO Helena Helmersson said last month.
Many Western companies promised to leave Russia after it sent troops into Ukraine, taking months to wind down operations and often selling holdings to Russian firms. McDonald’s sold its 850 restaurants to a Russian franchisee owner, who is moving to reopen them under the name Vkusno-i Tochka. British energy giants Shell and BP are taking billions of dollars in charges to exit investments and holdings in Russia.
Meanwhile, some Western companies have remained in Russia or are partially operating. French-owned home improvement retailer Leroy Merlin has kept open its 112 stores in Russia, for example, while PepsiCo, Nestle and drugmaker Johnson & Johnson are supplying essentials like medications and baby formula while halting nonessential sales.
