Nike Is The Latest Global Brand To Exit Russia Completely - Forbes

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Topline

Sports apparel giant Nike is set to leave the Russian market for good, Reuters reported first on Thursday, becoming the latest multinational firm to abandon operations in the country since its invasion of Ukraine.

Key Facts

Nike’s decision to leave the Russian market comes three months after it paused its retail operations in the country.

In an emailed statement shared with Forbes, Nike said it will “responsibly scale down” operations over the coming months while “fully supporting” its employees in the country.

The move is likely to have very little impact on the company’s bottom line as income from Russia and Ukraine accounts for less than 1% of Nike’s overall revenue, the report adds.

Key Background

In March, Nike announced it was temporarily shutting down all retail stores it owned and operated in Russia, but authorized outlets owned by third-party franchisees remained open and continued to sell Nike merchandise. By May, Nike confirmed it was not renewing its business commitments in Russia, including an agreement with its largest franchisee in the country, Inventive Retail Group (IRG). Earlier in the same month, Nike canceled its sponsorship deal with Russian soccer club Spartak Moscow.

Tangent

Nike now joins a large group of high-profile global brands that have exited Russia since its invasion of Ukraine and subsequent Western sanctions against the country. Among sports apparel brands, Adidas shut down its retail stores in March after suspending its partnership with the country’s soccer federation. Uniqlo’s parent company, Fast Retailing, also suspended retail operations in the country in March, citing “a number of difficulties.” Other major companies exiting Russia included Starbucks, McDonald's and Coca-Cola.