Retailer Looks to Expand Its Russia Business As More Firms Pull Out

Russian arm of a French retailer would like to expand products selection at its stores,

  • Russian arm of a French retailer would like to expand products selection at its stores, The Telegraph described.
  • The retailer reported revenue had improved given that other makes halted functions in Russia, for each the outlet.
  • The determination to develop business enterprise will come as other manufacturers have shut suppliers in Russia.

A French retail giant claimed it would like to expand the products and solutions on present at its Russian retailers to fill the hole left by other brand names just after they halted operations in Russia, The Telegraph noted.

Leroy Merlin, which sells homeware and gardening products, reported that “product sales have substantially increased” since Russia invaded Ukraine on February 24, in accordance to The Telegraph. 

In a letter noticed by the Telegraph, heads of the Russian department of Leroy Merlin instructed suppliers: “Considering that the disappearance of selected companies from the market, we are open to your proposals on the boost of supply and the maximize of your assortment of goods.” 

“In the upcoming three to four months we system to totally switch imported items with those people made in Russia,” the letter added, per the Telegraph. 

The retail giant’s decision to increase organization operations in Russia will come as much more brands temporarily shut stores in the nation. Retail giants these types of as H&M, Starbucks, and IKEA – one particular of the company’s rivals in residence merchandise – have all halted operations in Russia due to the fact the invasion started out on February 24.

Other vendors which are however running in Russia have occur less than tension to close suppliers. Burger King and Papa John’s – every single running in Russia as a result of franchise agreements – have confronted criticism for getting outlets open up there. The places to eat have suspended company support for the chains, but have insisted that neither can unilaterally suspend operations there.

Leroy Merlin is owned by French retail moguls, Association Familiale Mulliez, who also individual the sports retailer, Decathlon. The Mulliez family members driving the organization is well worth all over $45.9 billion, according to Bloomberg.

Leroy Merlin operates 112 suppliers in Russia, while Decathlon has around 60 Russian shops. Neither retailer has suspended their functions in Russia, The Telegraph described.

Decathlon did not reply to Insider’s ask for for comment. Insider also reached out to Leroy Merlin and Affiliation Familiale Mulliez on LinkedIn, but did not straight away hear again.

Yet another sister business – the French grocery store big Auchan – which operates around 300 outlets in Russia is however open there, according to The Telegraph. A corporation spokesperson informed the paper that “the company stood beside Ukrainians by retaining retailers open up and supplying humanitarian assist.”

A agent for Auchan did not right away react to Insider’s ask for for remark when approached on LinkedIn.