Lockdown forces some shops to close for good

In almost every Russian region shopping malls have reopened after the lockdown (except for Kabardino-Balkaria). 

However, the malls are not the same as they used to be as one in every ten shops has not been able to return to full-scale operation. Sales staff claims that even the shops that reopened are not getting the same customer traffic as before the pandemic. Experts note that customer activity has reduced by around 40%.

Tyumen seems to have bounced back just fine. The cities affected the most include Yekaterinburg, Krasnoyarsk, Khabarovsk and St. Petersburg. Shopping malls there are at the highest risk of closure and bankruptcy.

According to Oleg Voitsekhovsky, Director of the Russian Council of Shopping Centers, if the pessimistic scenario proves true, 25% of the shopping malls in Russia that were hit by the lockdown and continue to suffer losses may close by September. Shop owners are paying rent and maintenance fees while not getting the same returns from sales, which is becoming economically unreasonable, the experts believes.

Previous ArticleNext Article