55 | SHOPPING CENTERS TODAY RUSSIA | NOVEMBER 2018
• Slow-paced economy recovery in Russia.
• Forecasted supply of the retail space record in Russia in the last 3 years.
• An increased focus of the developers on existing shopping centers redevelopment will lead to the higher concentration of international brands in the renovated objects.
• Relatively favorable socio-economic indicators and the expected retail space supply in 2018-2019 in Central and South Federal Districts which will become a priority field for expansion of international brands presented in Russia.
• Significant openings are not expected as the majority of the largest international retail companies are already presented in Russia; niche brands will keep opening new shops.
• No prerequisites for an active expansion of international brands can currently be noted.
• In the absence of any global changes retail chains will continue their development in Russia, but the pace will be lower compared to the pre-2014 period.
• Fast-food brands continue their expansion into new cities while remaining the major driver of the number of retail stores growth.
As a result:
Forecast: what to expect in 2019?
New openings and expansion of existing international brands are positively affected by:
• Sustainable interest of global retailers towards Moscow, St. Petersburg and million-plus cities for opening their first shops in Russia.
New openings and expansion of existing international brands are negatively affected by:
The high volatility of the ruble and the tense geopolitical situation.
• Increasing time lag between a shopping center opening date and its occupation by stores of international brands.
• A growing share of federal brands in shopping centers that create competition for international brands.
New international brands in H2 2017 – H1 2018