According to the results of Q1 2023, the vacancy rate in shopping malls shows an increase due to the continued exodus of some foreign retailers. Thus, at the beginning of the year it was up by 0.7 p.p. against the previous quarter, reaching 15.6%. However, empty premises are gradually filled with Russian brands and new players from “friendly” countries: during Q1 2023 the Russian market was replenished with five Turkish brands, and Russian retailers increased their share of their presence in retail facilities.
Under the pressure of sanctions and subsequent surge of inflation rates in 2022, the trend for shrinking consumer demand and population’s propensity to save money continues. The retail trade turnover in Moscow sagged 14,1% in Jan-Feb 2023 year-on-year. However, as inflation declines and the situation stabilizes, consumer demand is expected to pick up again and the dynamics of consumer demand will again be positive.