River Island to exit Russian market

After only 6 years in the Russian market River Island is to close its 10 store portfolio and cease operations.

The UK high street giant stated it's Russian trading partner, Maratex, was due to exit the fashion sphere, leaving 50 percent of the company without an owner. In Russia it is nearly impossible to become the sole owner of a business if you are a foreign entity.

River Island will continue to sell to Russia online

River Island will continue to sell to Russia via its online boutique and its relations with a local e-commerce partner are thought to remain unaffected.

According to reports, Maratex is to close its company, which may also affect its franchise agreements with Italian fast fashion group OVS and Esprit.

Earlier this autumn River Island stated it would focus on expanding in international markets, including South Africa and the Philippines. It also launched direct e-commerce websites in Australia, France and Germany.

In the autumn of 2008 River Island opened its first boutique in Moscow in conjunction with Maratex.

At the time River Island's chief executive Richard Bradbury said he will take a cautious approach to growth in the country. “We will adopt our normal policy – open a shop, trade it, see how it goes. Russia is a very big market, but it’s also a costly place to do business,” he said.