Cartier Joins Apple, Renault in Raising Russian Prices on Ruble
(Bloomberg) — Cartier, the luxury jeweler owned by Cie. Financiere Richemont SA, raised its Russian prices by as much as 50 percent after the ruble plunged to a record low.
The price increases reflect the current ruble rate, according to an employee at Cartier’s store on Moscow’s Petrovka Street. The jeweler closed its outlets in the Russian capital for the first half of today in preparation for price revisions. Cartier’s Trinity ring now sells for 125,000 rubles ($2,040), compared with 78,000 rubles, previously.
Retailers including Apple Inc., Renault SA and McDonald’s Corp. have been raising prices to offset the drop in the value of their sales in rubles. The ruble sank beyond 80 per dollar yesterday as panic swept across Moscow’s financial markets after a surprise 650 basis-point interest rate increase failed to stem the world’s worst currency rout this year.
Aurelie Ohayon, a Cartier spokeswoman, didn’t immediately respond to calls and e-mails requesting comment. A Richemont spokesman declined to comment on the price increase.
Swatch Group AG said it continues to observe the market in Russia, adding that “the ruble exchange rate is a problem, especially in such magnitude.” The company didn’t comment on prices or the possibility of shutting stores.
To contact the reporters on this story: Corinne Gretler in Zurich at cgretler1@bloomberg.net; Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Paul Jarvis, Robert Valpuesta
