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24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
Say goodbye to Kiabi: Mulier family closes business in Russia
The Kiabi store chain, which is owned by the Mulier family, will leave the Russian market by July next year. French entrepreneurs, who also own retail brands Auchan, Leroy Merlin and Decathlon, said they could not find the right model for running a clothing business here. For several years in a row, the Kiabi brand has remained unprofitable in the Russian Federation.
According to RBC, in the next six months, the owners plan to close all 17 retail outlets in Kazan, Krasnodar, Samara and other cities of the country. It is also planned to completely stop online trading by closing the website of the Kiabi online store.
The history of Kiabi began in 1978. The network was founded by Patrick Mulier, representing the richest commercial and industrial dynasty of France.
Over the past year, the losses of the legal entity representing the brand in Russia (LLC ‘Keruska’) have grown by a quarter, reaching 667 million rubles. At the same time, 2020 showed a catastrophic drop in the company's revenue by 31%. During the year, it reached the level of 3.2 billion rubles.
It is known that the largest tenants, including the ‘Vesna’ shopping and entertainment complex located in Altufevo, have already received preliminary notifications about the termination of the operating activities of Kiabi stores. Another shopping center has already received an official document. It is estimated that it may take 3 to 6 months to close a business.
Experts do not predict a massive withdrawal of foreign retailers from Russia. However, the likelihood that other market participants will start ‘getting ready to go’ after Kiabi is not excluded. For example, in 2021, the country lost three large international brands at once: the owner of the Topshop brand (the holding of the Arcadia Group went bankrupt), the Bath & Body Works and Shu Uemura cosmetic brands left the market.
What is more, the German online seller of children's goods mytoys.ru left Russia, Campina closed the production of Fruttis yogurt. Russian financial market also lost the Citigroup corporation. The Honda brand ceases to trade in cars.
According to RBC, in the next six months, the owners plan to close all 17 retail outlets in Kazan, Krasnodar, Samara and other cities of the country. It is also planned to completely stop online trading by closing the website of the Kiabi online store.
The history of Kiabi began in 1978. The network was founded by Patrick Mulier, representing the richest commercial and industrial dynasty of France.
In the current year, the family's fortune was estimated by Bloomberg at $ 45.9 billion.
A chain of stores selling inexpensive clothing, footwear and various accessories operates in 18 countries. In total, there are about 450 Kiabi outlets in the world.Over the past year, the losses of the legal entity representing the brand in Russia (LLC ‘Keruska’) have grown by a quarter, reaching 667 million rubles. At the same time, 2020 showed a catastrophic drop in the company's revenue by 31%. During the year, it reached the level of 3.2 billion rubles.
It is known that the largest tenants, including the ‘Vesna’ shopping and entertainment complex located in Altufevo, have already received preliminary notifications about the termination of the operating activities of Kiabi stores. Another shopping center has already received an official document. It is estimated that it may take 3 to 6 months to close a business.
According to experts, the main factor in the withdrawal of the French chain from the Russian market could be the fall in the purchasing power of Russian citizens.
This is indicated by the head of the ‘Urvista’ law firm Alexey Petropolsky. In his opinion, coupled with the production crisis and price dumping on the part of domestic manufacturers, as well as the prospect of widespread introduction of QR codes, the decision of Kiabi top managers to terminate business activities in Russia it is quite understandable.Experts do not predict a massive withdrawal of foreign retailers from Russia. However, the likelihood that other market participants will start ‘getting ready to go’ after Kiabi is not excluded. For example, in 2021, the country lost three large international brands at once: the owner of the Topshop brand (the holding of the Arcadia Group went bankrupt), the Bath & Body Works and Shu Uemura cosmetic brands left the market.
What is more, the German online seller of children's goods mytoys.ru left Russia, Campina closed the production of Fruttis yogurt. Russian financial market also lost the Citigroup corporation. The Honda brand ceases to trade in cars.
28.12.2021
