Rieker
Since the beginning of the year, 7% of clothing and footwear stores have been closed in Moscow
01.07.2015 3865

Since the beginning of the year, 7% of clothing and footwear stores have been closed in Moscow

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%.

According to Soyuzlegprom, since the beginning of the year, about 7% of outlets for the sale of clothing and footwear have closed in Moscow.  
5
1
Rating
Euro Shoes Exhibition

Latest News

Lockdown for fashion retail in the capital will begin on 28 October

The Moscow Mayor's Office gave a number of clarifications on the operation of shopping centers in the capital during the declared non-working days - quarantine for Covid-19, according to which, starting from October 28, all shops except pharmacies should be closed in Moscow shopping centers, ...
22.10.2021 363

Giuseppe Zanotti has released a collaboration with American skater Evan Mock

The friendship between the Italian fashion house and the American skater and Gossip Girl star Evan Mok led to the creation of a joint capsule collection, which was named ...
22.10.2021 224

Rendez-Vous opened a store in Cyprus

Rendez-Vous, a network of multi-brand footwear and accessories stores, again announces the opening of a point at a foreign resort popular with Russian tourists. This time, the chain store appeared on the island of Cyprus, on the first ...
21.10.2021 241

The "Honest ZNAK.Business" application now has a scan function without authorization

The Center for the Development of Advanced Technologies has expanded the capabilities of the Chestny ZNAK.Business mobile application. The developers have implemented a new scanning function in the application. Users now have the ability to scan codes in the marking system without ...
20.10.2021 233

"Lockdown" announced in Russia from October 30 to November 7

Russian President Vladimir Putin approved the proposal of Deputy Prime Minister Tatyana Golikova to introduce non-working days in the country from October 30 to November 7. Non-working days are announced with payroll. This measure is forced due to the growth of ...
20.10.2021 1707
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning