Retail Sector - Colliers International

supermarkets not just in large cities, but also in towns with a population of at least 50 thousand people. Maxidom (the first DIY operator
in Russia; opening of its first store took place in St. Petersburg in October 1997) is entering Moscow’s market of construction and
finishing materials.
Entertainment
Entertainment operators are also seeing a certain revival. National cinema chains have
resumed development, while regional operators have become more active. For example, KINO
CITY, having started its development in St. Petersburg in 2002, entered the Moscow market at
the end of 2007, and in the last two years has been designing and building properties in
Orenburg, Novosibirsk, St Petersburg, and Maykop. VERY VELLY, a Perm chain (currently
including three multiplex cinemas, two of which are located in Perm and one in Izhevsk), and
Charly, a Rostov chain (consisting of two multiplex cinemas) are also planning development.
Happylon, a chain of entertainment parks, which started its development in 2006 under the
Babylon brand in Kazakhstan, opened its first entertainment center in Moscow in 2009. The
second project of the chain was opened in VEGAS shopping and entertainment center; while at the end of April, opening of an
entertainment center in Galeria shopping and entertainment center in St. Petersburg is planned. At the same time, the company
continues to search for premises for its parks. KidZania, a Mexican chain of family entertainment centers, has found a partner for
development in Russia using the franchising concept. The Corporation for the Development of Territories (KRT) has presented its new
project, The Worlds of Captain N, to the market, and is planning to establish a chain of entertainment centers, N-Terra, in 33 cities in
Russia and non-CIS countries.
Shopping gallery operators are also active: foreign companies are making decisions regarding independent entry into the market and
signing partnership agreements with strong local players regarding development using the franchise model; active development of the
existing chains is planned.
Fashion Retailers
Hermes is entering the market independently (prior to May 1, 2011, JamilCo was developing them under a franchise agreement). Prada
also plans to start operating independently at the end of this year. Coach, Coty, and Desigual are planning to join them in the near
future. Guess?, an American apparel manufacturer, having taking distribution in Russia in its own hands, is planning to expand its chain
of stores (previously, JamilCo was developing the chain): during the spring and summer of 2011, opening of 10 new stores in Moscow,
St. Petersburg, Rostov-on-Don, Yekaterinburg, and Tatarstan is planned.
Moneks Trading has obtained the right to develop one of the most well-know lingerie brands, Victoria’s Secret, in Russia. JamilCo plans
to open first Jaeger (one of the British luxury fashions’ manufacturing and design leaders) stores in Russia in Q2 2011 at Vremena
Goda and Metropolis shopping centers. Jimmy Choo, a British fashion house, has signed a franchise agreement to open its stores in
Russia. According to the company’s announcement, the first boutique with an area of 50–60 sqm will open in Stoleshnikov Pereulok,
Moscow, in September 2011. Opening of the first Banana Republic store is planned for September at Afimall City shopping center.
Other retail operators announcing large-scale development plans include Monro, a Siberian footwear chain, which plans to expand the
chain by 40–60 stores; Gloria Jeans, which has announced expanding store trading floors and closing small stores; and Obuv Rossii,
with plans to open 50 stores in 2011. Mango, a Spanish operator, will launch 25–30 own and franchise stores in Russia (Irkutsk, Kazan,
Moscow, Novy Urengoy, Orenburg, St. Petersburg, Stavropol, Stary Oskol, and Yuzhno-Sakhalinsk). Bosco di Ciliegi plans to open
31 Bosco Sport stores of sports fashions in Russia in 2011 (in 2010, 28 stores were opened in Russia), expanding its presence by
approximately 10 cities.
Douglas Holding, a German company, has sold its Douglas Rivoli chain to competitors, the owners of Rive Gauche chain.
The acquisition will not allow Rive Gauche to surpass its largest competitor, L’Etoile chain, in terms of the number of stores;
nevertheless, it will expand its geography and strengthen its presence in Moscow and a number of cities in the regions.
Public Catering Operators
Foreign companies are making
decisions regarding independent
entry into the market and signing
partnership agreements with
strong local players regarding
development using the franchise
model; active development of the
existing chains is planned.
The public catering operators’ segment did not stand back, either. Having opened the first coffee shop in Moscow in 2010, the famous
Dunkin’ Donuts chain, considering Russia to be one of the largest and most promising European markets, plans to increase the number
of coffee shops to 20 in the very near future, and to 100 – in the long term. Other foreign chains – Chili’s, which operates in the same
format as T.G.I. Friday’s, Burger King and its regional franchisee, Ginza Project, have already been actively expanding and plan to
continue development. Traveler’s Coffee, a Siberian chain, opened the doors of its first coffee shop in Moscow at the end of April.
In addition, several international operators are considering the possibility of entering the Russian market, including Wendy’s/Arby’s
Group, an American fast food operator, which plans to open 180 fast food restaurants in Russia in the next 10 years.