Experts predict the loss of up to 70% of revenues in shopping malls due to the departure of foreign brands

Today 160 foreign companies have suspended their activities in Russia. In case of final withdrawal from the market of the country shopping centers can lose up to 70% of revenues, the real estate agency Knight Frank found out.

Of the 160 brands that have suspended operations 21% are in the fashion industry, 13% are automotive retailers, another 10% are convenience stores, says "Kommersant".

Only six companies have decided to leave Russia completely, but this figure may increase in the future, suggests the head of research and consulting Focus Michael Vasilyev. He believes that in six months the situation will be clarified: brands will either close completely and leave the premises, or the shopping centers themselves will demand it.

By estimates of Marina Malakhatko, head of retail department of CBRE, Shopping centers may lose from 30% to 70% of sales if foreign companies decide to leave Russia. While brands continue to pay rent and do not release their stores.

Even now, developers and owners of retail space have begun to look for replacements for the departing companies, and therefore are open to cooperation with counterparties from China, India, Turkey and South Korea, added Malahatko. In this case, the CEO of Fashion Consulting Group, Anna Lebsak-Kleimans, believes that in this case it is primarily a question of finding suppliers.

In order to increase production volumes Russian designers, according to the regional director of the department of retail real estate at Knight Frank Evgenia Hakberdieva, will need two or three years, as they need to build alternative logistics and relationships with new suppliers.

For current news read our Telegram-channel