Danish retailers boycott shoemaker ECCO for presence in Russia, Retail News, ET Retail
COPENHAGEN: Several of Denmark’s biggest retailers and online shops as well as Sweden’s Boozt have halted sales of ECCO products following the Danish shoemaker’s decision to keep its stores in Russia open.
Family-owned ECCO has kept its more than 250 stores in Russia open, even as many other global fashion brands such as Nike and Adidas have suspended operations in the country since its invasion of Ukraine two months ago. .
Swedish online store Boozt, which sells more than 700 fashion brands, told Reuters it would no longer place new orders with ECCO following the escalating conflict in Ukraine.
Five Danish retailers and online shops, including Intersport, told Reuters they had suspended sales of ECCO products or would not take new orders from the company.
ECCO did not respond to requests for comment.
“A core value of our culture is that we take good care of our employees. That’s essential for us and that’s why we’re staying in Russia,” chief executive Panos Mytaros told the Berlingske newspaper last month. .
“We have to be realistic and say that ECCO plays a very small role in the Russian economy. Oil and gas, for example, is much more important. We are losing money on our Russian business and therefore will not pay any corporation tax,” he said.
The company would be tracking potential new sanctions that would make it impossible to continue doing business in Russia, Mytaros said.
ECCO, which has about 2,200 stores worldwide, had sales of 1.1 billion euros ($1.19 billion) in 2020.
Danish shoe retailer Skoringen had decided to keep ECCO products on its shelves.
“What we have on our shelves has nothing to do with the war in Russia. They were bought by a Danish supplier eight months ago,” Skoringen chief executive Frank Sorensen told Reuters.