Luxury Brands Abandon Part of Their Boutiques in Russia
French fashion houses Christian Dior and Hermès, along with Italy’s Prada Group, have decided to permanently close some of their boutiques in Moscow and St Petersburg, according to annexes to the 2024 financial statements of their Russian subsidiaries, RBC reports.
These brands had previously announced a suspension of operations of their boutiques in Russia in 2022.
According to Hermès’ filings, the company chose not to renew its lease at the upscale Vremena Goda shopping centre on Kutuzovsky Prospekt, Moscow, where it occupied a 450 sq m space. The original lease ran until 30 September 2035 but was cut short to the end of November last year. In 2024, the Russian subsidiary “Hermès Rus” decided to close the branch and terminate the lease.
The documents also revealed that Hermès also relinquished its office space at a business centre on Nizhny Kiselny Pereulok. In Moscow, the company has retained only one boutique – on Stoleshnikov Pereulok, which is under lease until the end of November 2026. The company also continues leasing a 501 sq m premises on Nevsky Prospekt in St Petersburg.
According to its reports, as of the end of 2024, Dior had four Moscow outlets under lease – all currently inactive. This is down from nine locations in 2023 (eight in Moscow, one in St Petersburg).
In 2024, Prada fully closed its operations at the Central Universal Department Store (TsUM) and did not renew the lease for its Miu Miu boutique on Stoleshnikov Pereulok. However, leases remain in place at Crocus City Mall in Krasnogorsk, and the company owns two premises in Russia as of the end of 2024, according to its reports.