Intertop estimated its losses following the destruction of the warehouse at 450 million hryvnia
Intertop’s preliminary direct losses following the destruction of its main logistics warehouse in the Kyiv region amount to approximately 450 million hryvnia. The company lost not only part of its current inventory but also new shipments of the fall-winter collection, so it is now forced to quickly restructure its logistics and revise some of its plans for network expansion.
Preliminary losses from the destruction of merchandise are estimated at 450 million UAH. This was reported by Intertop Ukraine CEO Badritdinov in an interview with the Ukrainian Retailers Association. According to him, the company will not be able to fully compensate for these losses. Intertop’s main task now is to replenish inventory as quickly as possible, establish new logistics routes, and ensure the stable operation of its stores, website, and mobile app.
“The preliminary amount of direct merchandise losses is 450 million hryvnia. Unfortunately, it is impossible to fully compensate for these losses. Currently, our main focus is to replenish inventory as quickly as possible in collaboration with our partners and suppliers, restructure our logistics processes, and ensure the stable operation of our stores, website, and mobile app,” Badritdinov noted.
What Exactly Was Destroyed in the Attack
This refers to inventory that the company planned to sell over the coming months. The destroyed warehouse stored items from current collections, as well as new shipments of clothing, footwear, and other goods for the fall-winter season. In other words, the damage affected not only existing inventory. The company lost part of the inventory that was supposed to support the chain’s operations for the new season.
The destruction of the warehouse also means the loss of a significant part of the company’s logistics infrastructure. Even if stores and online platforms continue to operate, it is much more difficult to quickly deliver goods to customers without the usual inventory and warehouse capacity. Company officials say the consequences will also be felt in the pace of future growth. Due to the loss of merchandise and logistics capabilities, Intertop is forced to reconsider some of the new store openings planned for the fall.
Diversification Helped Minimize Losses
At the same time, the scale of the losses could have been even greater. According to the head of Intertop Ukraine, the company had diversified its inventory in advance, so it was not stored exclusively in one location. This approach helped partially mitigate the impact of the disaster. Some of the merchandise remained at other locations, allowing the company to continue operations and gradually restore its product range.
Now, Intertop must essentially rebuild part of its logistics processes from scratch. The company is working with partners and suppliers to restock inventory more quickly and prevent major disruptions to store operations. For customers, this means that certain products may be temporarily unavailable or may be delayed in becoming available for purchase. At the same time, the company is striving to maintain the operation of its physical stores, website, and mobile app.
What Happened to the Intertop Warehouse
MTI Group’s main logistics hub was destroyed as a result of a Russian attack on August 5. This was the high-tech, automated, Class A logistics complex DENKA LOGISTICS in the village of Chaiky in the Kyiv region. The complex housed, among other things, Intertop Ukraine’s warehouse facilities. As a result of the strike, the company lost a significant volume of merchandise and a crucial part of its logistics infrastructure.
For a large retail chain, a warehouse is more than just a place to store products. It serves as the hub for deliveries to stores, order fulfillment for customers, and the movement of goods between various points of sale. Therefore, the destruction of such a facility affects more than just the cost of the lost merchandise. The company must find alternative facilities, change delivery routes, negotiate with suppliers, and restructure its entire inventory management system.
Intertop Calls on the Government to Help Businesses
The head of Intertop Ukraine also outlined what form government support could take for companies that have suffered significant losses due to Russian attacks. In his view, Ukraine needs a clear mechanism for compensating businesses for verified losses. Among possible solutions, he mentioned the option of offsetting a portion of the losses against future income tax or VAT payments.
Another tool could be accessible, preferential financial support for recovery. Businesses that have lost warehouses, equipment, or inventory due to shelling need funds not only to cover losses already incurred but also to quickly return to normal operations.
Badritdinov also believes that, during the recovery period, some regulatory requirements for affected companies could be temporarily simplified. “To assist affected businesses, the government could introduce a clear mechanism for compensating verified losses, including offsetting a portion of the losses against future income tax or VAT payments, providing accessible preferential financing for recovery, and temporarily easing the regulatory burden,” he noted.
Intertop also addresses competition with foreign platforms
Separately, the head of Intertop raised the issue of competition between Ukrainian companies and foreign online platforms. According to him, Ukrainian businesses operate within the country, pay taxes, create jobs, and invest in the economy’s development. Therefore, in his view, the rules for Ukrainian companies and foreign marketplaces should be as comparable as possible.
“And finally—a level playing field for Ukrainian businesses and foreign online platforms. Ukrainian companies pay taxes, create jobs, and invest in the country, so they should not be placed at a competitive disadvantage,” Badritdinov emphasized.
He also noted that European countries are reviewing their approaches to taxing foreign marketplaces. According to the head of Intertop, Ukraine should move in the same direction. “Ukraine also needs to move toward a model where comparable rules apply to everyone who sells to Ukrainian consumers,” he stressed.
The company is preparing to resume operations
Despite significant losses, Intertop has no plans to halt operations. The company is focused on replenishing inventory and finding new logistics solutions. In the near future, the main priority will be to restore stable deliveries to stores and fulfill online orders. To this end, Intertop will work with suppliers and partners, as well as restructure its warehousing and delivery systems.
At the same time, the Russian attack has already impacted the company’s plans. Some of the new store openings scheduled for the fall will have to be revised due to the loss of inventory and logistics capacity. Thus, the destruction of the warehouse has meant more than just a direct loss of merchandise worth hundreds of millions of hryvnias for Intertop. The company has lost a crucial component of its logistics system and is now forced to simultaneously replenish inventory, seek new delivery solutions, and adjust its future development plans. Badritdinov discussed this in an interview with the Ukrainian Retailers Association.
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