2022 new street retail outlets opened in the center of St. Petersburg in 113

According to Nikoliers, over the 12 months of last year, 113 new street retail outlets were opened on five key shopping streets in St. Petersburg compared to 163 in 2021. Thus, the number of new openings in the center of St. Petersburg decreased by 30,6% over the year.

Clothing and footwear stores formed 17% of new openings (19 outlets). Most of the new stores are represented by small Russian brands such as Mia Monica, MoonShine, DreamWhite and Nude Story. Among the shoe brands that opened in the city center in the street retail format are Sofia and Tamaris. 

As a result of the rotation and vacancy of premises on the five main shopping streets, 2022 street retail outlets closed in 105. Compared to the previous year, closures were almost 10% less common: in 2021, 115 establishments and shops completed their work.

Also, the share of vacant premises on five key trade corridors decreased - by the end of 2022, the vacancy rate was 8,9%, which is 0,7 p.p. lower than a year earlier. Although on different streets the vacancy changed differently. Nevsky Prospekt and B. Konyushennaya Street showed a decrease in the number of vacant premises (by 5,1 and 2,8 percentage points, respectively), but did not reach the “pre-Covid” level of vacancy.

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On Staro-Nevsky, Bolshoi Prospekt P.S. and Rubinshteina Street, the vacancy rate increased over the year, with the most significant growth occurring at Rubinshtein Street, from 2,5% to 6,2%. In particular, Vice City, RS20 and Crazy Wine establishments were closed on the main bar street of the city. Closing on Bolshoi Prospekt P.S. At the end of the year, Cos, &Other Stories, H&M Home, Nespresso and other stores led to an increase in vacancy to 8,1% by the end of the year. 

During the first half of the year, a number of foreign retailers announced a temporary suspension of their activities in Russia. Since the beginning of March, 27 stores have been suspended on the central shopping corridors. By the end of the year, 11 outlets resumed work under old or new signs, six premises were vacated, and ten stores remain temporarily closed: Prada on Bolshaya Konyushennaya, Uniqlo on Kamennoostrovsky Prospekt, Zara on Nevsky Prospekt, as well as boutiques Brunello Cucinelli, Dior , Bulgari, Louis Vuitton, ESCADA, Fendi and Chanel on Staro-Nevsky Prospekt. 

“Changing geopolitical and macroeconomic conditions in 2022 have become a real challenge for tenants and lessors of retail space in St. Petersburg,” comments Yulia Kuznetsova, Deputy Director of the Retail Real Estate Department at Nikoliers. — Many companies had to restructure their operations: change the supply chain of goods, optimize costs, or completely change the brand or assortment. However, market participants are actively adapting to the changes that have taken place, so in the absence of major external shocks, we can expect that the level of vacancy in the street retail of the central part of St. Petersburg in 2023 will remain stable.”