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French cosmetics and beauty retailer Sephora has reached an agreement to divest its Russian subsidiary, becoming the latest Western business to leave Russia following its invasion of Ukraine.
Sephora is one of LVMH’s largest brands by revenue alongside Louis Vuitton, operating 88 stores in Russia with 1,200 employees.
The brand will now be fully owned by Sephora’s local general manager.
In a statement, LMVH said: “Sephora today announces the signature of an agreement for the sale of 100% of the shares of its subsidiary in Russia to its local general manager, aimed at favouring continuity for employees.”
The deal is subject to approval by relevant authorities, including anti-trust authorities.
Its announcement comes after Sephora temporarily closed its Russian stores in March in response to the conflict.
At the time, LVMH reportedly operated a total of 124 stores and had 3,500 employees in Russia.
Once the sale has closed, the new owner will operate the business under the ‘Ile de Beaute’ brand. In 2016, Sephora bought the local chain.
Other luxury labels, including Burberry, Hermes, Richemont, Kering and Chanel, have also temporarily closed their stores in Russia due to the Ukraine invasion.
Earlier this month, Swedish furniture retailer IKEA announced it is selling its products online in Russia for the last time before withdrawing from the country.
Last month, US-based sportswear brand Nike announced plans to leave the Russian market completely.
In February, Kohl’s announced the 400 Kohl’s stores that are due to add a Sephora beauty shop this year.
The stores are located across 36 US states, eight of which had not previously hosted a Sephora shop.
Sephora and Kohl’s initially partnered in December 2020 and launched the Sephora at Kohl’s concept last year.
The two retailers aim to open 850 joint concept stores by next year.