In Russian shopping malls, 20% of the free space for foreign brands remains.

There is only enough free retail space in Russian shopping malls to accommodate 20% of foreign brands that previously left the Russian market. This is reported in the study of the Criminal Code "SAMPA", which was reviewed by Izvestia on March 6.

According to the study, in 2022, foreign companies vacated about 2.8 million square meters. m of retail space. However, in two years the market has almost completely absorbed this volume, and now only 1.9 million square meters remain vacant, most of which are not suitable for large international brands.

"Reserves of suitable retail space are estimated at 0.6 million square meters, which is only 20% of the square footage used by the departed companies until 2022," the study notes.

The main problem is that 70% of the vacant space is located in specialized or neighborhood centers, as well as in residential buildings that do not meet the requirements of leading international brands.

In addition, there is an acute shortage of large-sized premises on the market, which were previously rented by companies such as H&M, Zara, Uniqlo and IKEA.

The long way back: what does it mean for foreign firms to return to Russia

Some corporations are going to return, but not everyone is welcome here.

"To find 2.8 million square meters again. It is simply unrealistic to create a high—class retail infrastructure today," said Maria Dorokhova, Commercial Director of SAMPA Management Company.

According to analysts, in 420 thousand square meters remain vacant in Moscow, over 100 thousand square meters in St. Petersburg, and from 70 thousand to 100 thousand square meters in large regional centers such as Yekaterinburg, Nizhny Novgorod and Samara. in demand from major brands, it has reached a historical minimum.

Experts also note that the return of foreign companies to the Russian market will require the removal of a number of obstacles, including legal, financial and infrastructural difficulties. In the current conditions, Russian shopping malls can offer only limited opportunities to accommodate international brands.

Earlier, on February 19, analysts of the Kokoc Group platform predicted a massive the return of foreign companies to Russia: 350 foreign brands may enter the country's market again in 2025.