Apparel Giant Nike to Completely Exit Russia
The list of Western companies that are completely pulling out of Russia in response to its invasion of Ukraine continues to grow, with apparel giant Nike saying it will join that group.
The mega brand joins other companies like Starbucks and McDonald’s who will no longer just settle for temporary measures. Nike said in a statement that it will be permanently leaving the Russian market and will not reopen its stores after initially temporarily shuttering them shortly after Moscow started a military campaign in Ukraine, according to a press release shared on Firstpost. In addition to the permanent closure of its physical locations in the country, Nike also said its website and app will no longer be available in the country.
However, it’s not as simple as closing the doors, walking away, and never looking back. “Nike has made the decision to leave the Russian marketplace,” the statement from the company read. “Our priority is to ensure we are fully supporting our employees while we responsibly scale down our operations over the coming months.”
According to a news release from Reuters, foreign companies seeking to exit Russia over the war in Ukraine face the possibility of new laws being passed in the coming weeks allowing Moscow to seize assets and impose criminal penalties. Because of that, some businesses are trying to accelerate their departure.
Nike isn’t the only big apparel brand making additional moves. Companies like adidas also shuttered their Russian stores in March upon initial reaction with no plans to resume operations. Reebok suspended operations in March, but is now reportedly in talks to sell more than 100 stores to Turkish shoe retailer FLO Magazacilik.
Nike said in a recent earnings call that its business in both Russia and Ukraine represents less than 1% of its total revenue.
Update: July 19, 2022
H&M, which is the world’s second-largest fashion retailer, said on Monday it had decided to exit Russia completely, joining a growing list of other companies doing the same thing, and sending its shares down 1%.
According to a report by the Business of Fashion, Russia was H&M’s sixth biggest market and the company was actually increasing its store count there while reducing physical stores in many other markets. The shutdown will affect the company’s 170 physical stores in the country and its online sales channels, a spokesperson said.
