Nike to Make Full Exit From Russia
Nike is making a full exit from Russia three months after suspending its operations there, the U.S. sportswear maker told Reuters on Thursday, as the pace of Western companies leaving the country accelerates. Nike said on March 3 it would temporarily suspend operations at all its Nike-owned and -operated stores in Russia in response to Moscow's actions in Ukraine, adding that those still open were operated by independent partners. Rival Adidas said in March it was shutting its Russian stores and pausing online sales. Puma also suspended its operations in March. Reebok suspended sales in March and is in talks to sell more than 100 stores to Turkish shoe retailer FLO Magazacilik.
Total Retail's Take: Nike has historically been a company willing to take a stand on social and political issues. Its decision to fully exit from Russia is the latest example of that. While certainly a decision made on principle, the move doesn't figure to have a significant impact on the sportswear brand's bottom line. Less than 1 percent of Nike's revenue is generated from Ukraine and Russia combined. But that's not the point. Nike and other brands are trying to align their values with that of consumers, who are increasingly looking to purchase from companies that they believe are trying to make a positive impact on society and the world.