Uniqlo to keep its stores open in Russia amid turmoil

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Uniqlo to keep its stores open in Russia amid turmoil

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 Uniqlo to keep its stores open in Russia amid turmoil
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Highlights

  • Uniqlo, a Japanese clothing manufacturer, will continue to operate in Russia amid turmoil.
  • Since Putin invaded Ukraine, big corporations, ranging from Disney to Apple, have exited the Russian market.
  • There have been appeals for a boycott of Uniqlo because it intends to continue doing business in Russia, while millions fled war-torn Ukraine in search of safety.

According to a report, Uniqlo, a Japanese clothing manufacturer, will continue to operate in Russia. At the same time, other major companies have suspended operations and closed stores in protest of Russian President Vladimir Putin's unjustifiable war on Ukraine.

Japanese firm Uniqlo offers casual clothes for all kinds of folks. People on social media have also criticised Uniqlo's move.

Western governments have imposed sanctions to exert pressure on Putin over the war.

Tadashi Yanai, the CEO of Fast Retailing, a Japanese retail holding firm, also owns Uniqlo. He pledged to keep its 50 stores in Russia open. Regardless of Putin's actions, he believes that its residents should have the right to clothes and other necessities.

In addition, Theory, GU and UNIQLO are just a few of the fashion brands that Fast Retailing owns. In FY2021, UNIQLO, the Group's flagship brand, achieved annual sales of about ¥1.77 trillion from 2,312 stores in 25 nations.

Also read: How Russia-Ukraine war could trigger gas price explosion

Going against the grain

Yanai's Uniqlo is an exception among big companies that have halted operations to oppose Russia's aggression on Ukraine, even if it means incurring financial losses. Since Putin invaded Ukraine, big corporations ranging from Disney to Apple have exited the Russian market.

Swedish fast-fashion chain H&M, Uniqlo's competitor, has also announced that all sales in Russia would be temporarily halted, citing concerns for the safety of its staff. Uniqlo's other competitor, Spanish apparel retailer Zara, also followed suit to suspend operations in Russia. 

People took to social media to vent about the firm. Moreover, there have been appeals for a boycott of Uniqlo because it intends to continue doing business in Russia, while millions fled war-torn Ukraine in search of safety.

Uniqlo, on the other hand, has taken steps to express its solidarity with the people of Ukraine, who continue to face persistent Russian attacks. 

Also watch: Russia- Ukraine Crisis: Has Putin lost the war already?

Fast Retailing’s stance on Russian refugees

Fast Retailing said last week that it had donated $10 million to the UN High Commissioner for Refugees, which is assisting displaced Ukrainians with financial assistance. The funds will help pay the costs of psychosocial support, lodging and other services for people who have been compelled to depart the nation. 

Do read: S32, RIO: Two ASX aluminium stocks in focus amid Russia-Ukraine war

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