Vans closes branded retail and moves to wholesale sales in Russia
The American VF Corporation, which owns the brands Vans, The North Face, Timberland and others, has decided to close Vans branded retail in Russia. However, the brand will not leave the market, the company will continue to develop the wholesale direction. Such decision follows from the reporting of the Russian division of VF Corporation, - Kommersant writes.
With the outbreak of the military conflict in Ukraine in February 2022, many Western brands have decided to suspend their retail projects in Russia. VF Corporation also suspended some of its stores and stopped online sales in the country. However, Vans retail stores in key shopping centers continued to operate until the spring of 2023, when it was decided to close branded retail. As of the end of 2022, there were 12 Vans stores in Moscow and St. Petersburg, according to the company.
According to the reporting of the Russian division of VF Corporation - "VF CIA-ES", at the end of 2022 its revenue decreased by 50,8% year-on-year, to 1,36 billion rubles. Net loss amounted to 306,97 million rubles. against a profit of 420 million rubles. in 2021.
The decision to close Vans retail in Russia, according to fashion experts, is dictated by reputational risks for an American company that continues to develop business in Russia. Fashion Consulting Group (FCG) CEO Anna Lebsack-Kleymans considers the reorientation of VF Corporation's business in the Russian market exclusively to wholesale sales as a compromise option. Continuing work in Russia as a distribution partner enables the company to maintain the popularity of its own brands, at least through representation in multi-brand networks and maintain business momentum.
According to Nikolliers, at the end of 2022, international retail holdings with 23 brands have finally left Russia, and 25 international chains with 27 brands remain on pause, leaving their stores closed. Another 22 companies that managed 31 brands sold the Russian business, which in some cases was accompanied by the renaming of stores.
The American VF Corporation, which owns the brands Vans, The North Face, Timberland and others, has decided to close Vans branded retail in Russia. However, the brand will not leave with ...
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