LPP and Jysk are withdrawing from Russia

Until now, Russia was the second largest market for LPP in terms of revenues, but after the aggression against Ukraine, the company decided to expand its operations mainly in Poland and other European countries.

fot. Mateusz Słodkowski / Trojmiasto.pl

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Other large companies prioritize humanitarian (and probably also image-related) considerations over short-term financial benefits and are withdrawing from Russia. LPP and Jysk, which has its headquarters in Gdańsk, have just joined the world’s largest brands.

The whole world is imposing economic sanctions on Russia, but also consumers and companies trading across the eastern border are contributing to the boycott. Owner of the Reserved, Croop, House, Sinsay and Mohito brands, i.e. Gdańsk LPP has just made a decision about withdrawal from Russia, where it has nearly 500 stores and a powerful distribution center. Russia is the second largest market for LPP in terms of revenues.

“The Management Board of LPP SA, taking into account the restrictions imposed on Russia by the EU, decided to suspend operating activities in Russia, including in particular: stopping the development of LPP brands in Russia and stopping the delivery of commercial goods to Russia. The above-described actions will be implemented successively, taking into account operational limitations “- we read in the LPP release.
LPP currently has over 2,000. showrooms all over the world: from Gdańsk, through Prague, Hamburg and Budapest, to Shanghai. Employs 27 thousand. people. In the report for the third quarter of 2021, we read that as much as 57 percent. it owes its revenues to sales abroad. Most in Russia and Ukraine.

Earlier, LPP decided to make a full write-off of the value of all Ukrainian assets with a value of approximately PLN 270 million. It is practically an assumption that all Ukrainian assets will be lost. Nevertheless, the company reassures its shareholders that its activity is not threatened, because it has a large financial cushion: PLN 1.6 billion in its accounts, and there is also PLN 0.7 billion available in credit lines.

Jysk: We cannot operate in Russia

The Jysk chain with its operating headquarters in Gdańsk is also giving up the huge market in Russia.

– From the beginning we focus on the safety of our Ukrainian employees. That is why we started our activities with the temporary closure of all our 86 stores in Ukraine. The current situation in Russia definitely prevents us from doing business, so we decided to temporarily close all our 13 stores in this country – says Rune Jungberg PedersenDirector of Communications and CSR at Jysk.
Earlier, deliveries to Russia from the Radomsko Distribution Center were suspended, it was decided not to sign new lease agreements and to stop all marketing activities in Russia.

The world’s largest companies say no to Russia

Russian aggression caused the largest companies in the world to leave this country. The list has over 70 entities and is constantly growing.

Stationary or online stores in Russia closed, among others Ikea, Adidas, Apple, Audi, BMW. Parcels are not delivered by DHL and UPS, and the largest brands are breaking advertising contracts with Russian clubs and national teams.

Many companies, including automotive ones, refuse to deliver not only finished products to Russia, but also the smallest components. Even the well-known erotic site OnlyFans blocked the accounts of users from Russia and Belarus.

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