The West Cancels Russia: IKEA and other retailers close stores to take a stance against Putin
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A wave of Western firms are curbing business with Russia after its invasion of Ukraine, and the world’s largest furniture brand – IKEA – followed suit by closing all of its stores and pausing all sourcing in the country.
And while a number of international companies have already halted operations in Russia due to the war and worldwide outrage against the country, IKEA is one of the first companies to include Russia’s ally, Belarus, in its pullout.
After IKEA announced the suspension of activities in Russia on Thursday, hundreds and hundreds of shoppers crammed into the remaining stores in an attempt to score a final bargain.
Shoppers swarmed to stores to pick up last-minute bargains in Moscow and St Petersburg. Credit: Reuters.
Brand owners Inter IKEA and Ingka Group released a joint statement, saying: “The devastating war in Ukraine is a human tragedy, and our deepest empathy and concerns are with the millions of people impacted.”
“The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia.”
Credit: Reuters.
And while the decision to pause operations in Russia may affect over 15,000 employees in the country, Tolga Oncu, Ingka Group’s retail operations manager, has made assurances that all staff will get paid, in roubles, for at least the next three months.
“The company groups will secure employment and income stability and provide support to them and their families in the region,” they said.
It was recorded that Russia is IKEA’s 10th-biggest market with retail sales of 1.6 billion euros ($2.4 billion AUD), roughly 4% of the company’s total retail sales.
In Russia, IKEA has three factories that produce chipboards and wood-based products. The company also has around fifty direct suppliers in the country that produce a wide range of goods for the Russian market.
And since a majority of products made in Russia are also sold in Russia, the pullout will likely not have a ‘bigger picture’ impact on IKEA. Goods produced in Russia and exported to other countries make up less than 1% of their total products globally.
Belarus, on the other hand, is purely a sourcing market for IKEA; the furniture company has no stores in the country.
Demonstrators march with a banner that reads "Ukraine—Peace, Russia—Freedom," in Moscow on February 24, 2022, after Russia's attack on Ukraine. Credit: Dmitry Serebryakov / AP.
The list of global retailers cutting ties with Russia continues to grow, now that more and more companies are taking a stance against Putin and Russia amidst the ongoing worldwide outrage.
Here are a few others:
Tech giant Apple has stopped both product sales and services in Russia, making it clear that it stands with those who are suffering due to the invasion. Apple Pay and other services such as Apple Maps have also been limited in the country.
The global tech company’s move follows after Mykhailo Fedorov, Ukraine’s digital minister, wrote to Apple chief executive Tim Cook, pleading with him to freeze sales in Russia. Fedorov hopes this will infuriate young Russians and motivate them to protest against the invasion of Ukraine.
American footwear company Nike has also stopped processing online orders in Russia, given that it cannot guarantee the delivery of goods to its customers in the country.
Nike still has over a hundred stores operating in Russia at the moment, but with limited capacities.
Despite the sportswear giant not making any statements and references to the ongoing war, Lesia Vsylenko, a member of the Ukrainian parliament, said that Nike’s move was a great example of how private companies could impose sanctions against Russia.
Swedish company H&M – which is considered the world’s second-largest clothing retailer – has paused all sales in Russia, following deep concerns over the ongoing situation in Ukraine.
Despite Russia being H&M’s sixth-biggest market, the retail giant has already temporarily shuttered all stores in Ukraine “due to the safety of customers and colleagues”.
Swedish audio-streaming company Spotify has also closed its Russian office indefinitely, in response to the country’s “unprovoked attack on Ukraine,” though the company says it is not disabling its service in Russia as it believes it is critical to maintaining a “global flow of information”.
Japanese vehicle company Honda has suspended exports of its cars and motorcycles to Russia, though a spokesperson said it was because of shipping and payment difficulties.
The Walt Disney Company, which owns Marvel Studios, 20th Century Studios, Pixar and other film properties, announced on Monday that it is pausing its release of theatrical films in Russia, including its anticipated Pixar film Turning Red, “given the unprovoked invasion of Ukraine and the tragic humanitarian crisis.”
What do you think of all these corporations ‘taking a stand’ against Putin?
And while a number of international companies have already halted operations in Russia due to the war and worldwide outrage against the country, IKEA is one of the first companies to include Russia’s ally, Belarus, in its pullout.
After IKEA announced the suspension of activities in Russia on Thursday, hundreds and hundreds of shoppers crammed into the remaining stores in an attempt to score a final bargain.
Shoppers swarmed to stores to pick up last-minute bargains in Moscow and St Petersburg. Credit: Reuters.
“The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia.”
Credit: Reuters.
And while the decision to pause operations in Russia may affect over 15,000 employees in the country, Tolga Oncu, Ingka Group’s retail operations manager, has made assurances that all staff will get paid, in roubles, for at least the next three months.
“The company groups will secure employment and income stability and provide support to them and their families in the region,” they said.
It was recorded that Russia is IKEA’s 10th-biggest market with retail sales of 1.6 billion euros ($2.4 billion AUD), roughly 4% of the company’s total retail sales.
In Russia, IKEA has three factories that produce chipboards and wood-based products. The company also has around fifty direct suppliers in the country that produce a wide range of goods for the Russian market.
And since a majority of products made in Russia are also sold in Russia, the pullout will likely not have a ‘bigger picture’ impact on IKEA. Goods produced in Russia and exported to other countries make up less than 1% of their total products globally.
Belarus, on the other hand, is purely a sourcing market for IKEA; the furniture company has no stores in the country.
Demonstrators march with a banner that reads "Ukraine—Peace, Russia—Freedom," in Moscow on February 24, 2022, after Russia's attack on Ukraine. Credit: Dmitry Serebryakov / AP.
Here are a few others:
Tech giant Apple has stopped both product sales and services in Russia, making it clear that it stands with those who are suffering due to the invasion. Apple Pay and other services such as Apple Maps have also been limited in the country.
The global tech company’s move follows after Mykhailo Fedorov, Ukraine’s digital minister, wrote to Apple chief executive Tim Cook, pleading with him to freeze sales in Russia. Fedorov hopes this will infuriate young Russians and motivate them to protest against the invasion of Ukraine.
American footwear company Nike has also stopped processing online orders in Russia, given that it cannot guarantee the delivery of goods to its customers in the country.
Nike still has over a hundred stores operating in Russia at the moment, but with limited capacities.
Despite the sportswear giant not making any statements and references to the ongoing war, Lesia Vsylenko, a member of the Ukrainian parliament, said that Nike’s move was a great example of how private companies could impose sanctions against Russia.
Swedish company H&M – which is considered the world’s second-largest clothing retailer – has paused all sales in Russia, following deep concerns over the ongoing situation in Ukraine.
Despite Russia being H&M’s sixth-biggest market, the retail giant has already temporarily shuttered all stores in Ukraine “due to the safety of customers and colleagues”.
Swedish audio-streaming company Spotify has also closed its Russian office indefinitely, in response to the country’s “unprovoked attack on Ukraine,” though the company says it is not disabling its service in Russia as it believes it is critical to maintaining a “global flow of information”.
Japanese vehicle company Honda has suspended exports of its cars and motorcycles to Russia, though a spokesperson said it was because of shipping and payment difficulties.
The Walt Disney Company, which owns Marvel Studios, 20th Century Studios, Pixar and other film properties, announced on Monday that it is pausing its release of theatrical films in Russia, including its anticipated Pixar film Turning Red, “given the unprovoked invasion of Ukraine and the tragic humanitarian crisis.”
What do you think of all these corporations ‘taking a stand’ against Putin?
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