Perhaps, a flurry of negative posts against Uniqlo in social networks became temporary difficulties. Formally, the retailer said in a statement that the company faced “a number of difficulties, including operational challenges and an aggravation of the conflict situation.” At the same time, unlike many, Uniqlo gave Russians more than a week to make their purchases here, and did not close the same day or the next, like most. The company also promised that during the period of temporary suspension of activities, it will continue to support its employees.
One foot here, one foot there
There are retailers that have not closed, but have suspended their development in Russia to one degree or another. Obviously, not wanting to close off opportunities for further growth in the country, but trying to support the common agenda.
The most striking example is Burger King, which, according to the press service, "does not plan to leave Russia and still considers it as one of the strategic markets." In addition, the company plans to open more new restaurants in the country in 2022. “The company is experiencing some difficulties with the supply of a number of ingredients, but they are all temporary. Nothing critical - we are firmly on our feet,” said Ivan Shestov, communications director for Burger King Russia, who was quoted by RIA Novosti.
Burger King can afford it because the company's business in Russia is fully franchised and locally managed. At the same time, the retailer has suspended all of its corporate support for the Russian market, including all operations, marketing and supply chain, and has abandoned investment expansion. The company also stated that it intends to direct all profits from franchising operations to humanitarian aid to Ukrainian refugees. In addition, the press service released a statement that Burger King franchisees in more than 25 European countries are ready to provide Ukrainian refugees with free food vouchers worth $2 million.
Most companies note in their statements that they want to continue working over time. Representatives of Inditex have already stated that the company wants to resume work in the Russian Federation "when it becomes possible." The group includes clothing, footwear and accessories stores under the brands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque — one of the key fashion tenants of large shopping centers. And for Inditex, Russia is the second market after Spain in terms of the number of stores.
Who stayed in Russia and why
There are not so many well-known networks that have remained in Russia. These are mainly Turkish and Chinese brands, as well as companies that operate on a franchise basis. Companies from France also showed a reserved position. The Minister of Economy and Finance of France, Bruno Le Maire, recommended that French brands not rush to leave Russia, considering that it would be inappropriate to leave the Russian market completely “unilaterally and without warning anyone” during the crisis.
For example, Leroy Merlin continues its work in Russia, which will definitely benefit from the suspension of IKEA and Ob. The letter to the retailer's partners said: "Despite all the rumors, we continue to work and do not plan to stop the company's activities." It was reported that Leroy Merlin is open to proposals to increase supplies and expand the range. The company also set up an import substitution headquarters and significantly stepped up the search for a new range and the replacement of goods with which there were difficulties in supply or production.