The Russian Fashion Retail Market - Igedo Company

Shpagina, Director General of DIALMA, the franchise partner of MANOUKIAN, the
store will extend on two floors. Jones Lang LaSalle also announced, that three
British fashion brands, WAREHOUSE, FRENCH CONNECTION and RIVER ISLAND
have chosen GALLERY as location for the opening of mono-brand stores. Lease
contracts have been signed by the master franchiser for WAREHOUSE and
FRENCH CONNECTION named CENTERPOINT and SK BREEZE, the developer of
GALLERY. As it was stated by Alexander Golobov, regional development manager
of CENTERPOINT, the two stores will cover a retail space each of around 180
square meters. Maratex, franchise partner for Russia and Ukraine for RIVER
ISLAND, will join the other three brands at GALLERY and will open a store under
this brand on a floor space of 800 square meters. In addition to such brands the
following have concluded lease contracts for GALLERY shopping mall: ESPRIT;
LADY & GENTLEMAN (multi-brand); NEW LOOK; BENETTON; SNOW QUEEN (multibrand);
MANGO; TATUUM; MOTIVI; TERRANOVA; CALLIOPE; LACOSTE among
others. The price level environment at GALLERY follows the trend in Russia
focusing on "democratic" to upper medium positioned clothing.
3.12. TOM TAILOR getting independent from FDLab
August 18, 2010, malls.ru/Kommersant
As Kommersant writes, "Fashion Distribution Lab (FDLab), one of the largest
apparel distributors in the Russian market is once again reviewing its portfolio of
brands and stops working in building store networks for German TOM TAILOR and
British WAREHOUSE". The separation was concluded in July 2010. TOM TAILOR
will continue to work in the Russian market independently. WAREHOUSE owned by
Aurora Fashions, went under the roof of CENTERPOINT, as new Russian franchise
partner. FDLab confirmed continuation of its partnerships with MARC O'POLO,
COAST, MOA and other foreign brands. The separation from WAREHOUSE for
whom FDLab had opened four stores was reasoned by lacking profitability. In the
case of TOM TAILOR, FDLab claimed that the wholesale business was profitable
but not the feasibility of shop development.
3.13. MANGO strengthens market presence in Russia
August 12, 2010, malls.ru/retailer.ru/shopandmall.ru
Spanish clothing retailer MANGO who operates independently on the Russian
fashion market, is reported by shopandmall to continue concentrating on its own
retail store development but the company will not give up development of
franchising. Until the end of 2010 MANGO will open seven new stores, three of
which to be located in St. Petersburg, two in Moscow and one of each in Voronezh,
Saratov and Ekaterinburg. At the end of July 2010 MANGO counted a network of
64 mono-brand stores all across Russia with a concentration on Moscow and St.
Petersburg. Next year the company implements an expansion plan to open
smaller scale stores of 100 to 150 square metes in mid-sized cities of a population
of 300.000 to 500.000.
3.14. Voronezh delaying construction of IKEA's new MEGA MALL
August 26, shopandmall.ru
According to RBC Daily, over the past 8 months IKEA did not open any new
commercial and entertainment centers under its brand MEGA MALL, due to
bureaucratic interference imposed on IKEA by regional administrations. At this
moment IKEA keeps struggling with the local bureaucracy of Voronezh to obtain
approval for the start of construction of its MEGA MALL project in Voronezh. A
spokesman of IKEA said that the company does not expect the permit until the
end of 2011 due to problem of "internal nature". IKEA faces similar problems for
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