Mothercare To Lose Up To One-Quarter Of Retail Sales As It Cuts Russian Ties
Mothercare has become one of the latest UK retailers to suspend operations in Russia following its unprovoked and ongoing attack on Ukraine that began a fortnight ago.
The retailer has halted product shipments to Russia, while its local partner in Russia has suspended all operations at its 120 retail establishments.
The retailer’s announcement followed similar announcements by some of the world’s largest consumer brands, such as Pepsi, Coca-Cola, and McDonald’s. While large firms are keen to demonstrate their support for the people of Ukraine, the move by Mothercare could substantially impact its trade. Russia is responsible for around one fifth and one-quarter of its worldwide retail sales, and operations in the country bring in a profit of around £500,000 per month. Following Mothercare’s announcement, shares dropped by 25%.
On March 8, the United Nations confirmed the deaths of 406 Ukrainian civilians, though the real figure is suspected to be significantly higher. Millions of people have now fled the country, seeking refuge across Europe. According to the BBC, Poland has accepted 1,294,903 refugees, while Hungary has taken 203,222, and Slovakia has 153,303.
