With the ongoing war between Ukraine and Russia, brands are finding themselves having to make tough decisions regarding their businesses.
Luxury brands like Chanel, LVHM, Hermès, and more have announced that they are closing all stores in Russia. Hermѐs led the charge, closing its three stores in Moscow. LVHM followed suit, closing its 124 boutiques in Russia. Kering had announced that company stores, which include the likes of Gucci and Balenciaga, will close temporarily due to growing concerns revolving around the situation in Europe. Chanel would also go on and say that it has closed its boutiques in Russia and suspended its e-commerce in the country as well. Online stores, such as Farfetch, Mytheres, and Yoox Net-a-Porter, are joining other stores in halting business in Russia, by pausing shipping to the country. Luxury brands are continuing to close their stores due to operational challenges. They have been left out of sanctions that were imposed on the country, but still find it difficult to conduct business. Burberry has recently closed three stores in Moscow along with shutting down its online operations. Doing business and conducting transactions has become increasingly difficult as companies such as Visa and Mastercard have pulled out of Russia. Companies are taking a greater stand in ensuring that employees working in Ukraine are safe.
Companies such as L’Oréal, Unilever, and Burberry have stated their top priority is “updating and offering resources to global teams as the situation unfolds''. Prada has also gone on to say that their “...primary concern is for all colleagues and their families… and we will continue to support them.” L’Oréal, LVHM, and Kering have promised to provide financial support to help Ukrainian refugees, donating funds to Ukrainian relief efforts. Luxury brands will have to continually adjust to the situation as it changes. They will have to try and upkeep their business while making sure their employees are safe and secure along with doing their part to help those who have been affected by the Russian invasion.
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