H&M Group has announced its final withdrawal from Russia, confirming the move on its official communications channel. The statement explains that after careful consideration, continuing the company’s business in Russia would be impossible.
As part of winding down, the firm plans to reopen physical stores temporarily starting in August. The company told RIA Novosti that there is no fixed opening date for sales in Russia, with August being the tentative window. Reports from Mash indicate that the sale will continue until the warehouse stock of 15 million units is exhausted. Online sales will not resume, and entry will be restricted. Employees are expected to conduct on-site sales with a 25% discount. H&M operates 130 stores within the country. These steps follow the company’s March 2 decision to suspend sales in Russia amid broader regional disruptions and a special operation in Ukraine. A subsequent report estimated losses from store closures in Russia, Belarus, and Ukraine, with the second quarter losses reaching 1.2 billion rubles.
The H&M Group, established in 1947, oversees a family of brands including COS, Monki, Weekday, & Other Stories, H&M HOME, and ARKET, among others. The company has maintained operations in Russia since 2009.
Why is online sales not happening?
Industry experts suggest the management chose to forgo online sales to avoid a repeat of challenges seen with other retailers. Analysts note that discounted products typically attract large interest, which can cause technical issues on a high-traffic site. As one law firm partner observed, the situation at a well-known retailer serves as a cautionary example. An academic specialist in international business also weighed in, highlighting the strategic balance between physical presence and digital channels in the current environment.
The reasoning considers the favorable store locations and the potential online bottlenecks. With entry restrictions and expected demand surges, a controlled flow of shoppers can help manage queues and reduce the need for deep discounts. Retail experts believe this approach could sustain mall traffic and support revenue, even as discounting remains in play.
Defective product returns and consumer rights
Industry counsel notes that any final sales will adhere to consumer protection regulations. Consumers should be able to return or exchange items within 14 days, provided the product is unused, with intact packaging and presentation. While a receipt is helpful, its absence does not automatically bar a refund. The rights outlined under consumer protection laws include replacements for the same brand or model, or a price-adjusted refund if a replacement is not available. Buyers may request a proportional reduction in the purchase price or seek coverage of costs for correcting defects, where appropriate.
Experts emphasize that a seller may request the return of a defective product, and consumers can demand complete refunds if contractual obligations are not met. In cases of disputed quality or non-fulfillment, authorities can be contacted, or legal action may be pursued to obtain compensation for losses arising from poor-quality goods. This framework supports consumer confidence even as markets adjust to store closures and restructured distribution.
Source attributions: statements reflect industry commentary and legal perspectives on consumer rights and retail strategy during market transitions. (Citation: industry experts and legal professionals in relevant jurisdictions).