Following the example set by Swedish retailer H M, the hypothetical scenario where all foreign clothing retailers pull their stores from the Russian market would unleash significant financial losses across the sector. Industry observers estimate a total impact in the vicinity of 760 to 800 million dollars. This figure reflects not only the immediate revenue shortfalls but also the ripple effects created by the abrupt withdrawal of familiar brands, the inventory still on hand, and the challenges of reconfiguring retail footprints in a market that remains open to change. The estimate is described by a source identified as Kommersan and rests on calculations that incorporate current store closures, shifts in consumer demand, and the potential consequences of unresolved lease commitments in prime retail spaces. The assessment underscores how a broad exit by foreign fashion retailers would reverberate through supply chains, distribution networks, and local employment in the retail ecosystem. [Citation: Kommersan analysis based on market data]n
The publication notes that among the big players, the Spanish fashion group Inditex stands out as potentially facing the largest losses. Inditex, which encompasses the Zara label along with Massimo Dutti, Bershka, Stradivarius and Pull & Bear, is projected to incur losses approaching three hundred million dollars as its operations in Russia contract or pause. In parallel, the Japanese retailer UniQlo is expected to absorb losses in the range of 150 to 170 million dollars, a figure that aligns closely with the downturn anticipated for the French sporting goods chain Decathlon. These projections take into account both the current footprint and the possibility of accelerated exit timelines, as well as headwinds from inventory liquidation and renegotiations of retail commitments. [Citation: Industry financial projections and brand portfolios]n
All of these brands have confirmed the closing of their stores within the Russian Federation, yet none has publicly declared a definitive withdrawal from the Russian market. In such a fluid landscape, executives are weighing strategic options that include selective outlet liquidation, continued local partnerships, and the potential for future returns if market conditions improve. Market researchers cite Statista data from 2020 indicating that Russia accounted for a modest share of each brand’s overall revenue: Uniqlo around 1.3 percent, H M roughly 4 percent, and Inditex about 8.5 percent. Those percentages illustrate how a market with relatively small overall contribution can nonetheless represent a material portion of regional sales during upheaval, influencing corporate risk assessments and regional strategies. [Citation: Statista 2020 market share data]
One source within the publication argues that the claimed 760 to 800 million dollar loss figure should be viewed as conservative. The total could rise if retailers face difficulties moving remaining inventory and if they encounter friction in dissolving long term lease agreements tied to major shopping center locations. The interplay between inventory clearance, lease negotiations, and future consumer demand in Russia will likely determine the final financial impact on these brands and the broader retail landscape in the region. The assessment highlights how lease exposure can magnify losses beyond simple revenue shortfalls, particularly in markets where retail real estate remains tight and renewal terms are uncertain. [Citation: Market risk assessment]n
Earlier reporting also noted that Hennes & Mauritz, the parent company behind H M, began implementing steps to wind down its Russian operations before officially exiting the market. The path to liquidation influences local market dynamics, including how promotions and in-store events are staged during the transition period. Observers suggest that retailers may turn to scheduled sales and inventory clearance to mitigate losses and preserve some value from existing stock, while they evaluate longer term strategic options for Russia. This approach mirrors how other brands in similar situations balance the desire to minimize losses with the realities of market uncertainty and regulatory scrutiny. [Citation: Industry observers on H M strategy]n