Moscow mall opens for Russian business after big brand exodus

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MOSCOW - Western fashion brands are conspicuous by their absence at a gleaming new shopping centre on the outskirts of Moscow - and customers say they scarcely miss them.

Following Moscow's decision to send thousands of troops into Ukraine at the end of February, international fashion brands from Adidas to Zara have paused operations in Russia, while Nike is one of the handful to commit to a definitive exit from the market.

The TsUM department store, owned by Russian luxury goods group Mercury, is one of the last places Russians can get hold of authentic luxury items from international companies. While consumers may be ready to buy what they can, managers at the Khovrino mall said not everyone had managed to open in time for the official opening on June 23.

For instance, Russian consumer electronics retailer M.Video-Eldorado ran into logistical issues, he said, and will only open in early July. A McDonald's restaurant had been scheduled to open in the mall, Mr Chernykh said, but the company's withdrawal from Russia made that impossible. Crocus Group, which also operates shopping centres, has said Russian malls are"de-energised" and have lost around 30 per cent of their footfall since Western brands left.

 

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