Thirteen months after the Russian invasion of Ukraine, Leroy Merlin throws in the towel and agrees to leave Russia. The French DIY giant, owned by the Mulliez family, announced on Friday plans to cede control of the 113 stores it owns in the country. “To the local leadership “. It should” to preserve the jobs of 45,000 employees and to keep the company operating for the benefit of the residents.” states Adeo, the parent company of Leroy Merlin. Leroy Merlin, based in Russia for eighteen years, is one of the French groups most exposed to this country, where it generates 20% of its global business.
This withdrawal is a major strategic reversal for AFM (Mulliez Family Association). Present in Russia with its three brands: Auchan, Decathlon and Leroy Merlin, AFM has always refused to leave Russia. This earned him a barrage of criticism. A year ago, photographs of the bombed Leroy Merlin store in Ukraine prompted employees to demand that they leave Russia. For its part, the distributor Auchan, which has 230 stores in Russia (10% of its turnover), has always assumed that it will be present on the ground to ensure its mission of feeding the Russian population. As for Decathlon, the sports brand, which is also part of the Mulliez galaxy, ceased operations a year ago and closed its 60 Russian stores due to lack of success in supplying them. Russian daily newspaper at the end of JanuaryRBK: refers to a sporting goods retailer’s search for a buyer for its local subsidiary. But Decathlon has not approved this withdrawal plan.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.