IKEA, H&M cease operations in Russia, people rush to stores for final bargains

IKEA and H&M are the latest retailers to temporarily halt operations in Russia. It was reported that the companies' stores in Belarus will also be shut as it expressed support and willingness to join Russia with its invasion of Ukraine.

The Swedish furniture company, which is also the world's largest, has 17 outlets in the Vladimir Putin-led country. IKEA said the ongoing invasion is creating a huge human impact and causing serious disruptions to the supply chain as well.

The situation has also made trading conditions harder for everyone. Thus, the company decided to suspend all operations, including manufacturing and retail, in Russia and Belarus. CNN Business noted that in response to the invasion and unprovoked attacks, dozens of companies have already left or stopped their operations in the Russian land.

On the downside, as IKEA is closing its stores and facilities in the territory, around 15,000 workers would be affected. To help them, the company will continue to give them their salary, but it is not certain until when this will continue.

H&M Group, which runs 168 stores in Russia, also announced on Wednesday, March 2, that it will also temporarily withdraw its business in the region by closing its shops. The Swedish clothing company headquartered in Stockholm is the latest retailer to join other major international brands in the decision to close their business in Russia for its attacks on Ukraine with the intention of invasion.

"H&M Group cares for all colleagues and joins all those around the world who are calling for peace. Clothes and other necessities are donated by the company," the firm said.

IKEA is also making a big donation to Ukraine and will forward €20 million or around $22 million for humanitarian assistance. The fund is meant to help those who were forcibly displaced due to the war in their homeland. It was reported that IKEA made the donation in response to United Nations High Commissioner for Refugees' emergency appeal for support.

Meanwhile, Daily Mail reported that as IKEA is closing its doors in Russia, people have rushed to the stores at the last minute for final bargains. Long lines of shoppers were spotted, and most of them have purchased furniture and home essentials.