Marks & Spencer pulls out of Russia

Marks & Spencer pulls out of Russia

Marks & Spencer says it will fully exit the Russian market, BBC News reported.

The retail giant stopped shipments to Russia in March but previously said complex franchise deals prevented it from withdrawing completely, with about 50 shops still open. But the firm said after negotiations it would fully exit its Russian franchise. It came as M&S reported pre-tax profits of £392m for the year to 2 April - up from a loss of £209m the previous year.

However, M&S said it expected sales growth to slow due to rising costs and increased pressure on customer budgets.

The company said it was facing increased food costs, driven by global supply issues and labour shortages, while factory, transport and freight costs, as well as continued supply issues in China, were putting pressure on its clothing and home business.

The retailer opened its first store in Russia in 2005. Its Russian arm is run by Turkish company FiBA, which operates 48 shops under the M&S banner in the country with 1,200 employees.