Home / Knowledge / News / Apparel/Garments / Russia new destination for leading global retailers
Russia new destination for leading global retailers
14
Jun '16
Courtesy: HKTDC Research
In a first of sorts, more than 50 per cent of the world's leading retail chains now operate in Russia. This has taken the country to an exclusive club of nations that command such attention from global merchandisers, with the existing members including the UK, the US, the UAE and China.

According to HKTDC Research, this is the second positive development for the country's beleaguered economy is as many months. Back in April, the World Bank predicted that Russia would return to growth – albeit by a modest 1.1 per cent – in 2017. In something of a caveat, however, it also forecast that the country's economy would shrink by a further 1.9 per cent in 2016 before tempered growth resumed.

A total of 52 global retail chains launched their first stores Russia in 2015. Forty of these outlets were opened in Moscow, with the remainder opting for one of the country's less expensive cities for their initial venture into the market. Regardless of location, it is believed that all of these retailers succeeded in renegotiating their rental terms to their own advantages by the end of last year. This was largely because the availability of commercial property still continues to considerably outweigh demand across Russia, the HKTDC Research report said.

Aside from Moscow, the most popular cities with multinational retailers proved to be St Petersburg, Yekaterinburg, Nizhny Novgorod and Samara. All of these cities are home to international standard shopping malls complete with globally significant anchor retailers, including Ikea (Sweden), OBI (Germany) and Auchan (France).

Among the retailers making their Russian debut in 2015 were Tsumori Chiasto, MCS, Malo, Nelva and Henry Cotton's. Overall, the most significant proportion of these newcomers – some 25 per cent – came from Italy.

Balanced against these arrivals, however, was the departure of number of familiar names from the Russian High Street. In total, 11 retailers exited the market, primarily those in the clothing, footwear and accessories sectors. These closures were headlined by several British retailers, most notably Laura Ashley, New Look, Esprit, OVS and River Island. Another high profile casualty came in the form of Finland's Stockmann Department Stores, which sold its retail operation to Debenhams' Russian franchisee.

Sadly, the more recent news has also been less than reassuring. Finland's Kesko Group has announced it is to sell its Intersport sporting goods and sportswear stores. While the company has been developing the brand as a licensee in Russia for several years now, it has pulled out following falling sales and increased competition from two rival chains – France's Decathlon and Russia's Sportmaster. In a similarly disappointing move, UK-owned Monsoon Accessorize has sold its Russian operation to Podium Market, a domestic fashion and accessories retailer.

Despite these mixed signals, a number of commentators see this as the ideal time for new brands and overseas retailers to enter the Russian market. This could see such operators take advantage of the depressed property market and the competitively priced promotional and logistics support available across the country. In terms of an added incentive, hard-pushed Russian consumers are said to be extremely open to new – but competitively-priced brands. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Textiles | On 29th Jun 2017

Vietnam’s textile & garment exports cross $10bn till May

Vietnam earned $10... billion from textile and garment exports in the ...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X