The British fashion retailer Next has decided to leave the Russian market.
Olga Antonova, Director of the Real Estate Department at Crocus Group, spoke about the closure of stores. One of the key factors that influenced the problems of Next in Russia was the depreciation of the national currency. Since 2014, the ruble has fallen against the pound by 48%.
It is reported that the company will completely cease operations in Russia before the end of 2019. As of March 2019, there are 24 stores under the Next and Next kids brands in Russia. The company, founded in 1982, today operates a network of over 700 stores worldwide. Next entered the Russian market in 2006. The company's partner is Monex Trading, which is part of the Alshaya Group. The company's portfolio also includes Mothercare, Victoria's Secret, MAC, The Body Shop and other brands.
In 2018, Next's revenue in Russia remained at the level of 2017, the company's net profit decreased by 7%. In 2015-2016, Next was forced to raise its prices to keep its business profitable in Russia and Ukraine, causing British Pound-convertible sales to stop growing. Earlier, the British brands River Island, New Look, Mamas&Papas, Laura Ashley, Debenhams and others left the Russian market. Over the past year, 12 international brands left the market.