Kering’s Gucci, H&M, and Amazon Shut Middle East Stores as Regional Conflict Escalates

Major global brands, including Kering’s Gucci, H&M, Amazon, and Chalhoub Group’s 900 store regional network, have temporarily shuttered or reduced operations across the Middle East as escalating conflict between U.S.-Israeli forces and Iran disrupts retail, travel, and supply chains. The closures, reported on March 2, 2026, mark one of the most significant retail disruptions the region has seen in recent years, hitting a market that luxury groups had identified as a rare growth engine in an otherwise slowing global sector.

A Market Built on Momentum

The Middle East had emerged as one of luxury retail’s strongest performers over the past several years, with Morgan Stanley and Bank of America estimating the region accounts for roughly 5% to 6% of global luxury sales. Brands from Cartier to Versace had accelerated expansion plans there, betting on strong tourism flows and rising local consumer wealth. That momentum is now directly at risk.​

Who Closed and Where

Kering confirmed its stores were temporarily closed across the UAE, Kuwait, Bahrain, and Qatar, with travel to the region suspended. Chalhoub Group, which operates around 900 stores for brands including Versace, Jimmy Choo, and Sephora, said its Bahrain locations were shut, while UAE, Saudi Arabia, and Jordan stores remained open with voluntary staff attendance only. Apple closed its Dubai stores until at least Thursday morning, and H&M confirmed closures in Bahrain and Israel.

E Commerce and Logistics Hit

Amazon closed its Abu Dhabi fulfilment centre, suspended regional deliveries, and instructed employees in Saudi Arabia and Jordan to remain indoors, according to an internal memo cited by Business Insider. Consumer goods company Reckitt shut its Bahrain manufacturing site and told all Middle East employees to work from home. The disruption points to a challenge that goes beyond store closures; supply chains and last mile logistics are also stalled.

Luxury Stocks React

Shares in LVMH, Hermès, and Richemont fell between 4% and 6.5% on Monday as investors assessed the exposure of their Middle East businesses. The sell off signals how seriously the financial markets are treating the operational uncertainty, even for groups with geographically diversified revenue.

Expansion Plans Now Uncertain

Primark, which had announced plans to open its first Dubai store in late March 2026, followed by locations in Bahrain and Qatar, said it was ‘monitoring the situation closely’. The timing is particularly awkward: several mass market retailers had only recently committed capital to the region as part of broader growth strategies. Whether those plans proceed depends entirely on how quickly the situation stabilises.