According to Soyuzlegprom, since the beginning of the year, about 7% of outlets for the sale of clothing and footwear have closed in Moscow. Among the main reasons for the decline are the increase in rental rates amid falling consumer demand and the general economic situation.
“Since the beginning of 2015, in large Russian cities, and above all in Moscow, the number of retail outlets has decreased by at least 5-7%. In the first quarter, sales of clothing and footwear fell by 42% in quantitative terms and by 19% in monetary terms, compared to the same period in 2014, ”said Igor Ulyanov, executive director of the Russian Union of Textile and Light Industry Entrepreneurs.
He stressed that mid-market companies working with low-cost brands lost almost 60% of sales. "The consequence was that the sellers of clothing and footwear are cutting costs by closing stores and cutting salaries," Ulyanov added.
Another reason for the closure of retail outlets with clothing and footwear was the high rental rates on real estate objects. “Due to very high rental rates, we have to close outlets. However, we are not closing at all, "the City Obuv management said.
According to a study by JLL, despite the fact that the maximum rental rates in shopping centers in Moscow decreased by more than 15% in the first quarter of 2015, the capital maintains a leading position among European cities in terms of the cost of rent for 1 sq. m. According to Ulyanov, the situation in the industry is a consequence of a drop in consumer demand, a significant increase in prices for imported raw materials, a shortage of own circulating assets and high cost of loans, an increase in tariffs of natural monopolies. “In addition, the production volumes of enterprises in the industry have sharply decreased in Russia. At the end of the first quarter, a drop was noted in all sub-sectors of the light industry. To a lesser extent - in textile and leather - about 6%, to a greater extent in footwear and clothing - 19% and 32%, ”Ulyanov said. According to Soyuzlegprom, in the first half of 2015, less footwear was produced in Russia by 19,3%.