‘I am watching my business fall apart’ – Can retailers survive inside Putin’s Russia?
Western brands have swiftly moved to shut down operations in Russia since the invasion of Ukraine, wiping well-known goods from the shelves. But what does it feel like for those trying to run businesses in the country?
The Russian partner of one western brand shares their story.
“To say I have concerns about the future is a huge understatement. Waking up every day with the knowledge that you are an unwilling part of this nightmare is devastating.
“I have been building my business for decades, and now I am watching it fall apart. I have people depending on me – not just my family, but my employees, who will lose their source of income, their health insurance, their livelihood. One of my biggest concerns is their welfare. But of course, compared with the tragedy that’s happening in Ukraine, all business concerns seem insignificant.
“As of this moment, retail businesses are still functioning – but the biggest question we all have is what will happen in a few weeks or months, when supplies run out.
“The big brands that operate in Russia themselves, like Ikea and Inditex [the owner of fashion chain Zara], have a bit more freedom – they can afford to temporarily suspend operations while continuing to pay their employees.
“The businesses that work under a licence agreement are facing much tougher challenges. I fear we will all have to make a difficult, strategic choice – whether to close our businesses permanently and sell off our remaining stocks, or try to keep the business afloat in the hope that the situation improves and supplies can be resumed.
“The first scenario presumes selling off the stock quickly in an attempt to salvage some of our investments, and maybe try to start a new business with that. The second scenario is more
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