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• Sephora employs 1,200 in 88 stores across the country
• Locations closed on March 8 following invasion of Ukraine
French luxury good maker LVMH’s retail beauty brand Sephora on Monday said it is selling its Russian subsidiary to a local general manager of the chain, making it the latest brand to pull out of the country following its invasion of Ukraine.
Sephora, which has 88 stores in Russia with 1,200 employees, will now operate under the “Ile de Beaute” brand, a local chain it bought in 2016, the company said in an emailed statement to Bloomberg.
The beauty retail chain began rebranding the stores in Russia under the Sephora banner in 2018 and was still in the process when the COVID-19 pandemic hit in 2020.
Sephora stores in Russia have been closed since early March following Russia’s invasion of Ukraine.
LVMH said in March that it had a total of 124 stores and 3,500 employees in Russia.
Leading European luxury labels Burberry, Hermes, Cartier-owner Richemont, Kering, and Chanel also temporarily closed their stores in Russia after the invasion.
Sephora said the deal is subject to antitrust clearance and, if cleared, would clear the way for the reopening of the chain.
Western companies are seeking to exit Russia with the prospect of new laws being passed in the coming weeks allowing Moscow to seize assets of foreign firms and impose criminal penalties, encouraging some businesses to accelerate their departure plans.
Last week, Yum Brands Inc (NYSE: YUM) said it is selling its KFC restaurants and franchise rights in Russia to a local buyer and plans to exit the country entirely.
Picture Credit: WWD
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