H&M selling remaining stock ahead of Russia exit

H&M and IKEA have relaunched sales of their remaining clothing and furniture in Russia as they look to finalize their exit from the country because of the military operation in Ukraine.

IKEA's sales are online only, but the H&M store at the indoor Moscow shopping mall Aviapark provided an indication of consumer interest. A steady stream of young shoppers flowed through the store Tuesday. Both H&M and IKEA are laying off staffers as they wrap up business in Russia. H&M said Tuesday that 6,000 workers will be affected and that it was working on details of offering continued support in the coming months.

IKEA said in June that many workers will lose their jobs and that it has guaranteed six months of pay, as well as core benefits. H&M said it expects costs from leaving Russia to reach about $197 million, which will be included as one-time costs in its third-quarter earnings this year. IKEA said in June that it also will reduce its workforce and start looking for new owners for its four factories in Russia. It will close its purchase and logistics offices in Moscow and Minsk, Belarus, a key Russian ally.