Agalarov spoke about "de-energized" and "impersonal" shopping centers

The decision of international clothing brands to temporarily stop work in RUSSIA, in fact, “de-energized” shopping centers, Emin Agalarov said in an interview with RBC. According to him,

After the suspension of work in the Russian market of international fashion retailers, Crocus Group shopping centers have already lost up to 30% of attendance. In an interview with RBC, the first vice president of the group, Emin Agalarov, shared his forecast that, if the situation does not change, shopping centers will soon completely lose customer traffic. There are no visitors without anchor tenants, RBC's interlocutor stated.

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In March 2022, many foreign sellers of clothing and footwear temporarily stopped their operations in Russia, in particular H&M Group (develops H&M, COS, & Other Stories, Arket), Inditex (Zara, Pull & Bear, Stradivarius, Bershka, Massimo Dutti, Oysho ), LVMH (Louis Vuitton, Dior, Fendi, Givenchy, Tiffany & Co, etc.).

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According to Agalarov, one of the largest sellers of luxury goods, Crocus City Mall, and the Vegas shopping and entertainment center chain, which are part of the Crocus Group, have lost 30% of anchor tenants, whose share can reach 40% of rental space. it is H&M, brands Inditex, Adidas that are the main traffic generators with key locations, and although they continue to pay rent, the Crocus Group's fees have decreased by about 30% of the group's turnover in the same period of 2021.

If the largest international store operators decide to leave Russia and permanently close their stores, it will not be possible to replace them with other tenants, Agalarov is convinced. These retailers occupy about 150-200 thousand square meters. m of the area of ​​shopping centers Crocus Group, and if 80-100 thousand square meters. m will remain without tenants, the centers will be "de-energized".

“If you have a luxury shopping center, you need Prada, Chanel, Louis Vuitton, if the middle category is Zara, H&M, Reebok, Adidas. And if they are not there, then the site is depersonalized, ”explains Agalarov.

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In the luxury segment, some retailers did not receive supplies of spring-summer collections. Crocus City Mall is dependent on luxury brands, many are closed, those who have a collection are working. But the problem is that not everyone has new collections in the new season, which means that in May sheepskin coats and fur boots are hanging in the boutique, ”Agalarov describes the situation. Some tenants have asked the Crocus Group for permission to close stores and pay only for maintenance until the situation with the arrival of new things is clarified.

The first vice-president of the Crocus Group expects that the situation with fashion brands will normalize. So far, there are no ready-made options for filling shopping centers and the group is in the “waiting” mode. “If not, I will come to the owner (Araz Agalarov. -) and say:“ We have a million square meters that we can no longer rent. What to do?" Let him make a decision, we will adapt. Maybe we’ll set up the world’s largest bowling center or warehouse, I don’t know, ”says Agalarov.

Crocus Group specializes in the construction and operation of commercial real estate. It owns Russia's largest trade and exhibition and business center Crocus City, which unites, in particular, the Crocus Expo exhibition complex, the Crocus City Hall concert hall, and the Crocus City Mall shopping center. In 2021, the group was among the 200 largest Russian companies with a revenue of RUB 55.5 billion. for 2020. The owner of 100% Crocus Group is Araz Agalarov.