Stores to close across Russia
04/08/2009
Industry body the European Fashion and Textile Export Council has predicted that more than 30% of Russia’s 42,000 clothing retailers could close by the end of this year.
The council has carried out a survey of German clothing manufacturers and found an average of 35% of their deliveries to Russia would be unsold this summer. Casualties of Russia’s downturn have included outlets of Diesel SpA and Stella McCartney, and Kommersant has reported that the local franchisee for Hong Kong sportswear maker Sprandi International closed 37 outlets in Moscow and St Petersburg after filing for bankruptcy in May.
Sources in Russia told Bloomberg that demand locally was weak, but said the number of retailers closing down was more likely to be between 10% and 20%.
Retail chain Russian Sport Fashion Group is reported to be close to closing down 13 of the stores it runs across the country under the Reebok brand name.
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