Shopping centers lose revenues as Russians grow poorer – experts

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.

A closed Prada shop at the TsUM Department Store. Pavel Bednyakov / RIA Novosti

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.

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