Russian shopping malls bankruptcy could lead to mass layoffs

Some 6.3 mio people may lose their jobs in Russia due to bankruptcy of local shopping malls, which are now facing more difficult conditions amid the COVID-19 pandemic as compared to the crises of 2008 and 2014.

Under a moderately optimistic scenario, by this year’s November and December the malls’ trade will amount to 70-80% of the pre-crisis levels. Returning to the levels of 2019 will take between 9 and 15 months upon shopping centers’ reopening. Even in case lockdown measures are lifted by early summer, malls are unlikely to provide their attendance by solvent purchases within the next two or three years.

Shopping centers’ bankruptcy amid the COVID-19 outbreak will lead to salary cuts and dismissal of some 6.3 mio people. Under the most pessimistic scenarios, malls could turn into empty concrete buildings, the Rossiyskaya Gazeta newspaper reported.   

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