Marks & Spencer leaving Russian market
MOSCOW. May 25 (Interfax) - Marks & Spencer (M&S) is leaving the Russian market.
The British fashion retailer said in a report that it had ceased shipments to Russia on March 3 as a result of the Ukraine situation. "Subsequently, we have made the decision to fully exit our Russian franchise and we have recognized a charge of GBP 31 million in adjusting items, representing our full exit costs from Russia and business disruption in Ukraine," it said.
The Ukrainian business has also been partially closed, and M&S is "working with our partner to reopen as and when possible," it said.
The M&S businesses in Russia and Ukraine have been operated by a license holder and franchise partner and in 2021/2022 generated retail sales of GBP 102.5 million and a contribution to profit before adjusting items of GBP 5.2 million.
M&S said on March 3 that it had suspended shipments to Russian stores, which are managed by a franchisee from Turkey.
The operator of M&S stores in Russia, Marka Rus LLC was owned by Netherlands-based Retail International Holding B.V. with 95% and two individuals, one of them a citizen of Turkey, the SPARK-Interfax system showed. The 95% stake was transferred to Turkey's Marka Magazacilik Anonim Sirketi in April.
Marka Rus LLC boosted revenue to Russian Accounting Standards 38.6% in 2021 to 7.65 billion rubles. Net profit tripled to 1.13 billion rubles.