The closure of international chain stores in Russia has hit the incomes of retail property owners hard. Shopping mall space rent in Moscow decreased by 5% in January-March, Kommersant reports quoting market analysts.
By the end of this year, the owners of the premises may lose up to 35% of their tenants and a third of their annual income.
According to experts, this trend clearly indicates a reduction in consumer activity.
“Shopping centers’ shrinking incomes clearly correlate with belt-tightening, economist Sergei Khestanov, Associate Professor at RANEPA says. “And 30% is a good medium-term estimate of the potential decline in the urban population’s material well-being.”
Major international retailers have suspended operations in Russia after the start of the special operation in Ukraine and the imposition of sanctions.