Textile chain C&A will fully divest from Russia. It currently collaborates with Russian Trade Group to manage its local store network, but it has pulled the plug on that deal. Mexx has also decided to shut down every Russian store.
Decision from February
The decision about its Russian retreat was taken several months ago, because the collaboration was halted in February. C&A no longer wants to use the franchise model, which prompted this decision.
The Russian Trade Group deal started in 2004 and consisted of eleven stores. The last one will soon shut down and there are no new plans to continue operations in Russia.
C&A launched a new strategy in February: it wants to modernize its entire organization, to help halt its slipping turnover. It has already shut down a number of onerous stores, but will also invest 1 billion euro, which should result in remodeled stores all around. Within the next five years, 80 % of its store network should have been updated.
Mexx also divests from Russia
Dutch C&A is not the only fashion chain to divest from Russia, because Turkish-owned Mexx will completely pull out of the country. Franchisee BNS Group managed the Russian stores, but those have not been profitable for a while, which is why Eroglu has decided to shut down its last Russian store on 31 July.
