Moscow, 18 April 2023. The share of international brands in the big box store format by the end of the first quarter of 2023 plunged to 35.9%, which is nearly half as much as in the fourth quarter of 2021, according to data based on survey of 12 big box shopping malls in Moscow’s prime locations.
A number of new trademarks from ‘friendly’ jurisdictions have gained a foothold in the market along with evolving Russian brands – out of 15 foreign companies, which have tapped into the market since early 2022, six brands have already opened more than one offline store.
Since early 2022, plans to enter the Russian market have been announced by 56 international companies. Ten brands, including Vilhelm Parfumerie, Li Ning, Coffee Boom, Perspective, Efor, Ipekyol, Twist, Alex YVN, Ruck&Maul, L&L Skin (corner), opened their first stores in Russia in 2022. Five more newcomers - Beymen Club, Loft, Madame Coco, NetWork, AC&Co - established a foothold in the first quarter of 2023. Most of them (64%) represent Turkish brands, including the five entrants coming in early 2023.
In Afimall City shopping centre, the spaces previously occupied by H&M Group have already been taken over by new tenants, including Serginetti, Yollo, Infinity Fashion, and Si Set. In Aviapark shopping centre, new tenants have already been found for nearly all the spaces vacated earlier by H&M Group and Inditex.
Meanwhile, remaining incumbents are poised for active expansion. Stockmann retail chain has announced plans to open new stores in Vegas Crocus City and Vegas Kuntsevo shopping malls this spring. Lady & gentleman CITY, a multi-brand retailer, is planning to launch a new clothing brand under the name ‘Just Clothes’. Melon Fashion Group is going to develop a new clothing brand called ‘Idol’.