Mothercare faces huge hit to profits as it closes Russian stores

Mothercare has become the latest retailer to announce it is closing its stores in Russia.

On Wednesday it said that all business in the country, including shipment of products, has been suspended.

The company confirmed that its local partner will immediately be stopping operations across its 120 stores, as well as online.

Russia makes up 20 – 25 per cent of the retailer’s worldwide retail sales – which means the move be a huge blow to its profits.

Mothercare said that Russian sales were previously expected to contribute £500,000 a month to group profit.

The move comes after Mothercare reported a loss of £21.5 million in its end of year results for the 52 weeks to 27 March 2021.

Mothercare joins a long list of retailers cutting ties with Russia over its invasion of Ukraine.

Earlier this week John Lewis announced it would remove all products made in Russia from its range, While Sainsbury’s revealed it would remove any products 100 per cent sourced from the region from its shelves.

Over the weekend, Zara-owner Inditex announced it would be closing its 502 Russian stores and pause its e-commerce service.

ASOS, H&M, Boohoo, Nike, Apple, Burberry, also announced they have shut down sales and stores in Russia over the past week.

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