Luxury brands are closing boutiques on Nevsky Prospekt
Rolex, Fendi, Salvatore Ferragamo, Breitling and Omega have closed their boutiques on the main street of St. Petersburg, and Louis Vuitton has similar plans. According to experts, the mass exodus of luxury brands from Nevsky Prospekt will provoke a decrease in rental prices, writes Kommersant-St. Petersburg.
The part of Nevsky Prospekt from Vosstaniya Square to the Alexander Nevsky Lavra, where the facilities of the closed brands were located, is one of the main boutique locations in St. Petersburg. Last spring, after Russia launched a special military operation in Ukraine, the Louis Vuitton, Dior, Chanel, Brunello Cucinelli and Bvlgari boutiques located on Nevsky suspended their operations.
In the current situation, the closure of luxury boutiques is associated with the difficult economic situation and political pressure that sellers of luxury brands experience in Europe, with difficulties in supplying goods to Russia.
It is assumed that luxury retailers initially took a wait-and-see approach, but now it has become clear that in the medium term there are no prerequisites for stabilizing the economic situation, commented one of the market participants.
Experts predict that the closure of boutiques of foreign luxury and premium fashion brands will continue, and this may provoke a decrease in rental rates on Nevsky Prospekt. In the first half of 2023, rates per square meter in this location ranged from 2,6 to 6,7 thousand rubles.
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