“Chanel” is reducing the number of stores in Russia due to sanctions
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The French company Chanel, which announced the suspension of its activities, but did not officially leave Russia after the start of the war in Ukraine, began to refuse to rent the premises where the brand’s boutiques are located. Three sources in the real estate market told Kommersant about this. Chanel did not respond to the publication’s request.
Two years ago, Chanel had 17 boutiques in Russia, mostly in Moscow. Now there are at least five of them on the brand’s website. For example, in the shopping center “Afimall” the publication confirmed that Chanel terminated the lease agreement on conditions that “are confidential information”. According to two interlocutors of the publication, the company is also discussing the issue of refusal of premises in the Geneva House business center in Moscow, where the brand’s flagship store is located. “Kommersant” source in the St. Petersburg real estate market said that one of the brand’s outlets in the city is running out of contract, which is unlikely to be extended.
Experts believe that other luxury brands will also follow this path, since sellers do not have an understanding of whether Western sanctions will be lifted on the import of clothes and accessories over 300 euros into Russia.
At the end of February 2022, the luxury industry companies Hermès, LVMH, which include Christian Dior, Louis Vuitton, Celine, Kenzo, Givenchy, as well as Kering, Burberry and others, left Russia.
The revenue of LLC “Chanel” in 2022 decreased by almost 76%, to four and a half billion rubles, and the net loss amounted to about two billion rubles.
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