PARIS, July 11 (Reuters) – LVMH’s (LVMH.PA) retail magnificence model Sephora is promoting its Russian subsidiary to the native basic supervisor of the chain, the French firm mentioned on Monday, becoming a member of a flood of Western companies leaving the nation.
Sephora, which has 88 shops in Russia with 1,200 staff, will now function beneath the “Ile de Beaute” model, an area chain it purchased in 2016, just a few years after an preliminary funding.
The retail chain started rebranding shops in Russia beneath the Sephora banner in 2018 and was nonetheless within the strategy of doing so when the worldwide pandemic hit in 2020.
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The wonder retailer’s shops in Russia have been closed since early March, when LVMH and different luxurious items firms introduced they had been suspending operations within the nation within the wake of Russia’s invasion of Ukraine.
LVMH mentioned in March that it had a complete of 124 shops and three,500 staff in Russia.
Main European luxurious labels Burberry (BRBY.L), Hermes (HRMS.PA), Cartier-owner Richemont (CFR.S), Kering (PRTP.PA) and Chanel briefly closed their shops in Russia after the Ukraine invasion, which prompted a wave of sanctions from america and the European Union. learn extra
Sephora mentioned the deal, which might clear the way in which for the reopening of the chain, was topic to antitrust clearance. It didn’t disclose the value of the transaction.
Plans for a regulation permitting Moscow to grab the belongings of international companies and impose legal penalties has prompted some to speed up their departure, resembling Nike (NKE.N), which determined to depart final month after suspending operations in March. learn extra
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Reporting by Mimosa Spencer; Further writing by Leigh Thomas; Enhancing by David Clarke
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