War in Ukraine: Decathlon resolves to suspend business in Russia

The sports equipment brand found that the supply conditions were no longer met to enable it to continue its activity in the country.

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Daily management of Decathlon Russian shops was right in the principles of the sports equipment brand. In a statement, the company reported on Tuesday, March 29 of its decision to “suspend the exploitation of its stores”, judging “that the supply conditions [were not] more met for [than She continues] her activity in Russia “. Without announcing his withdrawal of the country.

The company, which does not realize there that approximately 2% of its turnover each year, had until then maintained its activity. It justified this decision by the concern of allowing the 2,500 people employed in its 60 stores to work “under security conditions” and the service rendered to the population.

However, over the days, the work of the teams in the management of supplies became more and more complicated, the important company most of its goods to fill the rays of the stores. The fall of the ruble is not alone in question. Added to this was the closed ports, the routes impassable and the fact that the new carriers should be verified on the list of companies sanctioned by the Westerners.

The 2,500 employees will continue to Be paid

Not to mention that certain currencies, such as the dollar, were no longer accepted to pay the invoices. “In order to scrupulously respect international sanctions, all logistical decisions were made with our legal services,” explain within the group. Therefore, the situation was too difficult to manage. “The decision was made in the last 48 hours.” The 2,500 employees will continue to be paid, as are their colleagues in Ukraine.

For his part, Auchan, another brand belonging to the Mulliez family who continues his activities in his 231 stores in Russia (10% of his global turnover), is less disabled by these external supply issues, Because it “works in total autarky,” said the company, Sunday, March 27th. Its suppliers are mainly premises, especially since the embargo imposed on Western food products in 2014, after the annexation of Crimea, which gave a boost to the restructuring of the Russian agri-food industry. “Before 2014, we were selling French Camembert. Today, it is Russian cheeses. And we have a lot of own brands,” says Auchan.

“We manufacture in our fresh bread shops every day for the Ukrainians and for the Russians, which is vital right now, said Yves Claude, CEO of Auchan Retail, in the columns of Journal du dimanche, dimanche 27 mars. Nous agissons en discounter et nous pensons contribuer, en période de forte inflation, à protéger le pouvoir d’achat des habitants . Si Auchan part, nous privons d’emploi 30 000 personnes qui sont salariées et actionnaires pour 40 % d’entre elles. Et nos clients nous demandent instamment de rester. “

/Media reports.