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Turkish clothing brand Koton is closing its remaining two stores in Ukraine, ending its physical retail presence in the country after eight years of operations, the company announced.
In a public disclosure, it stated that its footprint in Ukraine was limited, with just two outlets making up a minor portion of overall operations. The move, it added, is part of a broader push to improve profitability, while continuing to serve customers through its e-commerce channel.
Koton entered the Ukrainian market in 2018, opening its first store in Kyiv’s Lavina Mall. At the time, the company viewed Ukraine as a strategic market, targeting a young and relatively affluent customer base.
The retailer mapped out an ambitious expansion strategy, aiming to reach more than 15 locations across cities including Dnipro, Kharkiv, Odesa, Zaporizhzhia and Lviv. However, those plans stalled, and the company never expanded beyond two stores, particularly after the war with Russia erupted in 2022.
The decision came as the company’s financial performance weakened. Revenue declined by 20% to 60.7 million UAH ($1.39 million) in 2025, while net losses widened by 16.6% to 43.2 million UAH.
Following Koton’s exit, its retail space at Lavina Mall in Kyiv will be taken over by two Ukrainian brands—Eva Beauty and Marathon, the Ukrainian Retailers Association reported.
Koton’s departure adds to a broader pattern of Turkish retail brands scaling back operations in Ukraine. Companies such as English Home, DeFacto and FLO have also exited the market in recent years.
In 2025, Koton ran 464 stores, 221 of them abroad, while operating across 35 countries with e-commerce in 70, and generated about ₺32.87 billion (around $830 million) in revenue.
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