Longchamp, a luxury French leather goods label, has taken the decision to take a step back in Russia and maintain presence in the country only through their e-commerce portal.
The decision comes as the lockdowns imposed earlier due to COVID-19 have put the business in losses.
The recovery of retail has been slow in the country despite lifting of restrictions, putting pressure on Longchamp’s cash flow.
The downsizing of retail presence is not restricted to Russia alone. Recently, the luxury brand closed its Madrid flagship as well, citing similar reasons.
The Russian arm of Longchamp was established back in 2014, after it took over two well-known franchisees in Moscow and St Petersberg. Another flagship outlet was unveiled in Moscow in 2017.
Longchamp’s Russia business reported revenues of €3.28 million or 263.4 million Russian roubles but suffered a loss of €260,000.
The downsizing in Spain and Russia notwithstanding, Longchamp announced earlier this week that it will now be available at John Lewis & Partners.
It was difficult for customers in the UK to get a hold of Longchamp items as it was only available at Selfridges, but now one of its bags is on its way to becoming a bestseller on the John Lewis website.