US clothing brands Tommy Hilfiger and Calvin Klein are rumored to reopen their stores in Russia this year under new names, following discussions about the sale of the chain of stores. Pavel Lyulin, the vice president of the Russian Union of Shopping Centers, revealed that these discussions have been ongoing since PVH Corp., the parent company of the American brands, handed over its operations in the Russian market to local management in August. The locally registered entity, now known as ‘Retail Excellence,’ will oversee operations for over 150 outlets in the country.
According to Lyulin, the stores’ assortment will be based on goods from the brands Tommy Hilfiger and Calvin Klein, as they are included in the list of parallel imports. He also emphasized that the prices are unlikely to be significantly adjusted, with only minor changes reflecting inflation. It is worth noting that a Tommy Hilfiger store is already operating in Moscow’s Aviapark shopping center, albeit without the brand logo.
PVH Corp. joined the exodus of Western firms from the Russian market last year in response to sanctions imposed on Moscow. In February 2022, the company announced the suspension of its commercial operations and subsequently closed its stores in the country. As a result of these businesses leaving, Russia has had to rely on parallel imports from Western markets and explore opportunities from non-Western markets. This shift has led to an increase in the presence of brands from countries such as Turkey, China, and India within Russia.
The return of Tommy Hilfiger and Calvin Klein stores to the Russian market is significant as it reflects the ongoing changes in the Russian retail landscape. With Western brands making a gradual comeback, it highlights the potential for improved business relations and the attractiveness of the Russian market for international retailers.
The reintroduction of these US clothing brands will not only provide consumers with access to popular products but also contribute to the overall growth of the retail sector in Russia. It is expected that the reopening of these stores will create job opportunities and increase competition in the market, ultimately benefiting the Russian economy.
This development also aligns with Russia’s efforts to diversify its import sources and reduce its dependence on Western markets. By welcoming brands from countries outside the traditional Western sphere, Russia is focusing on enhancing its economic ties with these nations and expanding its business networks.
The prospect of Tommy Hilfiger and Calvin Klein stores reopening in Russia has generated excitement among fashion enthusiasts and consumers alike. The anticipation of having access to these renowned brands, combined with the potential for reasonable prices, will likely drive increased footfall and sales in these stores.
In conclusion, the potential reopening of Tommy Hilfiger and Calvin Klein stores in Russia signals a positive shift in the country’s retail sector. With ongoing discussions and plans underway, it is expected that the Russian market will soon witness the return of these iconic US clothing brands. This development not only offers consumers greater choice but also positions Russia as an attractive market for international retailers, fostering economic growth and diversification.