Companies and individuals across the world have criticized Russia’s decision to invade Ukraine, and many have stopped doing business with Russia as a result. This includes a growing number of luxury brands and designers who are pulling out of the Russian market for the time being.

Fashion houses such as Chanel, Louis Vuitton, and Prada have publicized their decisions to temporarily close down their stores as well as halt operations and productions of merchandaisee in Russia in a sign of solidarity with Ukraine.

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“[We are] closely monitoring the tragic situation in Ukraine and stands alongside all those severely affected by this war,” a representative for Louis Vuitton told Yahoo! Finance. “The Group’s first concern is the safety of its 150 employees in Ukraine and is providing them with essential financial and operational assistance.”

In addition, Kering – the conglomerate that owns major designed brands like Gucci, Balenciaga, Yves Saint Laurent, and Alexander McQueen, has also announced it’s shutting all stores that currently operate in Russia.

It’s not only luxury brands that have taken moves to stop business with Russia amid the ongoing crisis. A variety of retailers across North America and Europe have ceased operations in Russia, some going so far as to suspend e-commerce transactions. This includes retailers like Ikea, Adidas, Canada Goose, and H&M.

The decision for many designer brands to shut down operations with Russia stands to have an impact on the retail industry. As per Reuters, investment bank Jeffries estimates that Russians account for $9 billion in annual luxury sales.

However, China and the United States are still the main countries funding the luxury markets, and the loss of Russian business pales in comparison. Jeffries notes that the Russian contribution is only 6% the Chinese and 14% of the American.

Still, many brands have seen sales take a nosedive since the onset of the conflict. Yahoo! Finance notes that Burberry’s sales are down 13%, while LVHM has dropped 10%.

Many of the luxury brands have promised to continue to pay employees despite store shut downs in Russia. For instance, LVHM – the French conglomerate that owns brands like Christian Dior, Givenchy, and Bulgari – said in a statement it will continue to pay its 3,500 employees across Russia.

Still, not every brand has addressed the ongoing conflict. Giorgio Armani has not publicly commented on whether it’s halting business with Russia. But with mounting pressure from consumers for brands to take a stand, it’s expected that more brands will release statements in the coming days.

Sources: SCMP, Yahoo! Finance, New York Times, Reuters,

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