among all commissioned facilities in Russia amounted to 89 %. Among the facilities announced for opening in 2023 , about 50 % in Russian regions are of a small format ” Boris Bogoutdinov explained .
According to him , regional shopping centers are attractive for development companies , and this trend will continue over the next few years . An important advantage of such projects is the possibility of entry not only for large investors , but also for smaller market players .
“ As for the occupancy of retail space , for regional residents it can be at the 90 % level by the time the facility is opened for business , but for largeformat facilities , the vacancy at the time of opening can reach up to 40 %” said Ivan Tatarinov , executive director of the development company Glincom .
According to NF Group , the average vacancy rate in Moscow shopping centers increased in the first quarter by 1.2 percentage points in annual dynamics , amounting to 14.5 %. The growth is due to the optimization of retail outlets , which faced the negative impact of the pandemic and the February events , and the departure of the international brands that occupied large areas in large retail facilities in Moscow . At the same time , vacant sites are gradually beginning to be taken up by new tenants , which hinders the entry of numerous vacant areas into the market .
The maximum base rental rates in Moscow shopping centers are in the food courts and retail kiosks in large facilities with high permeability . It reaches up to 180 thousand rubles (~ 2105 USD ) per sq . m per year , in other regions of Russian , it can reach up to 100 thousand rubles ( 1169 USD ) per sq . m per year , according to NF Group .
What brands are coming
The situation with the development of Russian retailers and the entry of new players into the market is complicated . Vacancy in shopping centers continues to grow , but the opportunities for the expansion of local brands and the replacement of foreign tenants are largely limited by the low-key consumption model of the population . At the same time , there ’ s a number of positive prerequisites on the market , IBC Real Estate analysts say .
So , alongside the supply chains stabilization , new open areas and market niches , new brands are opening in Russia and new local multi-brand stores are coming out . During the first quarter of 2023 five Turkish retailers appeared on the Russian market : Madame Coco , Loft , Network , Club and AC & CO , as well as three multi-brand stores with local and / or international brands : REMARK , NICO ’ NINI and TRND .
The remaining players on the market are expanding their selection in the vacant niches . For example , Gulliver The Group plans to develop a new GLVR chain that will focus on menswear and womenswear . Lady & Gentleman city retailer plans to launch a new line , “ Just Clothes ” for private label sale . Retailers increase the quantity and area of premises they rent . These brands include Lime , Love Republic , Sela , Gloria Jeans and others .
In Moscow shopping centers instead of H & M there were several Gloria Jeans stores opened . A total of 130 stores are planned for opening , to replace Decathlon , H & M , Uniqlo , M &, IBC Real Estate said in their report . Slava Concept department stores are opening instead of Adidas stores in the shopping centers of Voronezh , instead of Zara in Perm and instead of Bershka in Tula . Most of the opened stores occupy an area of more than 1 thousand sq . m .
The selling space of foreign brands that left the Russian market began to be occupied by Russian brands that were already familiar to consumers , but they did not have many opportunities for expansion due to high competition .
Such substitution occurs both in Moscow and other Russian regions . The key players that work on the international brands areas are Gloria Jeans , Befree and Stockmann .
There ’ s now a Kari store on the former site of one of the Ikea design studios in Moscow . By the way , Ikea ’ s niche can be taken by the Arab chain Home Box ( they sale an analogue of Swedish furniture ), which plans to open its first store in Russia . It also became known that the Turkish company Koton intends to triple the number of its stores in Russia by the end of 2027 : now this chain has 49 stores in Russia , and there will be 150 .
SHOPPING CENTERS RUSSIA | МАЙ-ИЮНЬ 2023 | 53