Previously, the luxury brand operated 17 stores in Russia, mainly in Moscow.

The French fashion brand Chanel, which remained in the Russian Federation after the start of a full-scale war in Ukraine, is still forced to stop working and terminate boutique lease agreements.

This was reported by RosSMI with reference to sources in the real estate market. Thus, according to sources, Chanel is negotiating with landlords to terminate lease agreements for the premises where the brand’s stores operated.

However, Chanel has not yet commented on this data.

Sources suggested that the company will also abandon the flagship store in the Geneva House on Petrovka, 7 in Moscow. However, the owner of the property has not yet confirmed this data.

Presence of Chanel in the Russian Federation

Previously, the luxury brand operated 17 stores in Russia, mainly in Moscow. Those located in large shopping centers are already closed.

In 2022, the Russian representative office of the company reduced revenue fourfold, to 4.5 billion rubles, the net loss amounted to 1.8 billion rubles against a profit of 1.7 billion rubles in 2021.

The profitability of the brand’s work in the Russian Federation was reduced by the European Union’s ban on the export of luxury goods to Russia over 300 euros.

All foreign luxury goods in the Russian Federation find themselves in a similar situation with Chanel. Therefore, companies that announced they were leaving but kept their leases are now also terminating their leases. In the Russian Federation there are no longer LVMH stores, Kering with its Gucci, as well as Hermes and Burberry boutiques.