Inditex, among the 30 most exposed companies in the world due to the war: nearly 1,000 million in sales are at stake

With Mango and H&M already out of Russia to a greater or lesser extent, the ball has fallen on the court of the Spanish giant in the sector, Inditex, which has not yet made a move in the country.

It has, at least temporarily, left Ukraine, which already made the name of the group a trend on Twitter on Thursday afternoon.

The social network was crying out for a virtual response and experts agree that the firm cannot remain silent.

However, Russia is its second most important market worldwide and is responsible for some 1,000 million euros in annual sales.

A recent report by the market analysis firm MacroYield collected by

already warned that the group founded by Amancio Ortega is one of the 30 world companies most exposed to the war, as well as the only Spanish company on this list.

Its network of 527 establishments in Russia is made up of 106 Bershka stores, 87 Pull & Bear, 86 Zara stores, 76 Stradivarius, 63 Oysho, 53 Massimo Dutti, 44 Zara Home and 12 Uterqüe.

Other Spanish companies have a presence in Russia, but none at this level (Repsol, for example, left the country in January after selling its last assets in the country to Gazprom Neft).

In addition, the rejection of the Russian invasion is also widespread.

The European Round Table group, of which the executive directors of Telefónica and Ferrovial are part, recently published a statement in which it showed its "full support" for the economic and financial sanctions of the European Union.

The "continuous escalation" of the war, they warn, "puts our European values ​​and interests to the test."

According to the data from the Non-Financial Information Statement of the Inditex Group for the year 2020 (that of 2021 has not yet been published), the importance of the country governed by Vladimir Putin for the company's accounts is undeniable.

In the section dedicated to Tax contribution and fiscal transparency, for example, it is reflected that the result before taxes for the 2020 financial year in Russia was

, which would mean 22% of the total in Europe without counting Spain. (8.3% if one takes into account what is the most important market for the firm) and 8.96% globally.

In 2019, the last year with pre-pandemic data, the influence decreases (it remains at 13%, 6.4% and 5.04%, respectively), but it still has considerable weight.

In fact, it is estimated that Inditex's sales in Russia are close to 5% of the global ones.

Again, if we go to the results published annually by the company, this would mean about

if a relatively confined 2020 is taken as a reference (20,402 million in total) and around 1,414 million if the percentage is applied to sales. net of 2019 (period in which sales stood at 28,286 million euros).

"For Spanish companies it is clear that the Spanish people are going to be with the Ukrainians and a company with a brand cannot afford to do nothing", explains

, professor of the Practice of Management in the Department of Management IESE Strategy.

And once one takes the step, all the others have a mirror in which to look at themselves and society, a reflection with which to compare them.

As

, coordinator of the Master's Degree in Foreign Trade Management and Internationalization of Companies at the International University of La Rioja (UNIR), points out, "you are more in evidence if all the companies leave the country and you do not".

Each blow to Russia adds up and the exits of H&M and Mango add pressure, although it is also true that they are only comparable by sector, but not by presence.

Mango closed 55 of its 120 stores in the country (the remaining 65 are franchises that the firm allows to act as they prefer) and H&M has 168, far from the 527 that Inditex accumulates among its different brands.

By number of workers (about 9,000),

, which has 15,000 between Belarus and Russia and has left both markets.

This structure also seems to be one of the reasons why Inditex's move may be delayed, although it is also key in the decision to leave.

It is necessary to evaluate how affected the supply chain is -"if the supply of goods is insufficient, it will be difficult for them to sell them", Azpitarte details-, what to do with a workforce equivalent to 20% of the population of Huesca and also prepare to the possibility of returning once the conflict is over.

"There are technical aspects that prevent or make it very difficult for business to function and that, in conjunction with the ethical and reputational aspect (the majority of international public opinion is currently very much against President Putin), could influence the decision to leave Russia. ", summarizes the teacher.

"Surely they are evaluating,

The experts consulted by EL MUNDO believe that what no company - not just Inditex - with a presence in Russia can afford is not taking sides.

"You have to choose an option, because

. Staying is already positioning yourself," Azpitarte exemplifies.

"What I wouldn't advise anyone to do is assume everything is business as usual," agrees Rosenberg: "They have to do something."

The other side of the coin in this case takes the form of the obverse of the ruble: is it possible to operate in Russia again after slamming the door?

In the same way that actions against the country are expected at the world level, its population -without forgetting its politicians- may not forgive those same measures.

"The more companies leave, you also have more peace of mind when it comes to positioning yourself," Azpitarte considers, because in his opinion "it seems difficult" for the Government to impose a general veto against all multinationals later.

As far as a possible boycott of the Russian people is concerned, it will also depend on how companies treat national workers: if he maintains salaries and jobs - he has the financial muscle to do so for a few months, although it would not be cheap - he can compensate for the departure, especially considering that not all of Russia supports the war.

"The most complex aspect of managing, beyond the disastrous consequences of the war itself, is the uncertainty and not knowing how long this situation is going to last", explains the professor.

"When you move in an environment of uncertainty and with changing scenarios, you are constantly forced to rethink your decisions. It is a complex environment, not only because ethical, economic and social issues come into play,

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Know more

• Inditex Group

• Companies

• War Ukraine Russia

CompaniesFrom Inditex's three million to Telefónica's free calls: this is how Spanish companies are helping Ukraine

War in UkraineInditex keeps its 527 stores open in Russia with more than 9,000 jobs and Tendam analyzes the situation

EmpresasIberdrola obtained record profits of 3,885 million and Galán warns that intervening in the market does not work

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