Decathlon becomes another brand to suspend its activities in Russia

Decathlon imports the bulk of the products it sells in its 60 stores in Russia. (Photo: RTE)

Decathlon, the sportswear division of a French retail giant that has come under fire for remaining in Russia during the country's invasion of Ukraine, announced it was stopping operations in the country due to supply constraints.

Decathlon is owned by the Mulliez family, which also owns DIY retailer Leroy Merlin and grocery retailer Auchan in Russia.

Western firms ranging from McDonald's and Starbucks to Deutsche Bank and Shell have withdrawn from Russia, citing customer and government pressure to impose an economic cost on Moscow for waging war on its neighbor.

Sanctions imposed by the West on Russia have also impeded doing business there.

"Decathlon underlines that the supply conditions for continuing its operations in Russia are no longer met in strict compliance with international sanctions. Decathlon has been forced to close all of its stores ".

Decathlon imports most of the merchandise it sells in Russia's 60 Decathlon outlets. It stated that it would maintain assistance for its 2,500 Russian employees, some of whom had worked for the company since 2006.

Auchan employs around 30,000 people in Russia, where it generates 10% of its global revenue through 231 stores and e-commerce.

Ukrainian President Volodymyr Zelensky has singled it out for continuing operations in Russia.

On the other hand, Auchan's CEO told the French newspaper Journal du Dimanche on Sunday that the business intended to keep a presence in Russia to avoid losing assets or exposing local management to legal issues if it withdrew.

Auchan's spokeswoman told Reuters that the company's attitude toward Russia has remained unchanged. The retailer imports the majority of the products it sells in Russia.

Leroy Merlin, which employs 45,000 people and operates 113 stores in Russia, obtains most of its products locally.

The company, which earned €5 billion in Russia last year - second only to France - stated that it was retaining its presence for the same reasons as Auchan.

Publish : 2022-03-30 16:07:00

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