IKEA Shopping Centres Russia is investing €260 million to develop a new 215,000 sqm modern shopping mall in Mytischi, north east Moscow. MEGA Mytischi will be one of Europe’s largest shopping centres, and is set to attract a raft of international retailers seeking expansion opportunities in Russia.
Scheduled to open in early 2018 and welcome an expected 25 – 30 million visitors per year, MEGA Mytischi, like all of IKEA Shopping Centres Russia’s MEGA branded malls, will benefit from an IKEA store as a powerful anchor tenant, along with other DIY and hypermarket anchors.
MEGA Mytischi will be split over two floors, with 40 percent of space being reserved for anchor stores, and the remaining 60 percent providing space for a huge variety of retailers, restaurants and services. Its tenant mix will focus on bringing together major international brands from the fashion, food, leisure, entertainment and furniture sectors, with emphasis placed on creating a leading family lifestyle destination for the mid-range consumer.
More than half of the gallery will be available for fashion retailers, with focus on mid-range ‘best of the high street’ brands. Eating out continues to grow in Russia, and MEGA Mytischi will offer food and beverage space for tenants with proven experience of increasing dwell time and driving footfall. The mall will also provide more than 10,000 parking spaces that will be a significant attraction to Moscow’s many car-driving families.
MEGA Mytischi’s development is part of a wider investment programme being undertaken by IKEA Shopping Centres Russia between now and 2020. The company has a long-term commitment to Russia and its growing retail market.
IKEA Shopping Centres Russia already has MEGA malls in 11 of Russia’s 15 ‘Millionniki’ cities with over one million people. Plans for new MEGA malls will continue to focus on cities with a population of over one million, but the shopping centre developer has confirmed it is also looking closely at cities with populations of over 500,000.
Armin Michaely IKEA Shopping Centres Russia’s general director commented: “The €2 billion investment programme will see us build new, modern, sustainable MEGA centres throughout Russia in the coming years. We have also embarked on a major upgrade programme at our existing centres with brand new food court concepts and mall extensions.
“MEGA Mytischi is a very exciting project, and the super-regional mall will set a benchmark for modern retailing in Russia. A carefully selected tenant mix will be complemented with architecture that is modern, sustainable and functional. In addition, the shopping centre will be surrounded by a park with a community centre, benefiting visitors and people living in the local area,” Mr. Michaely continued.
Mr. Michaely also explains the strong demographic case for building MEGA Mytischi and the intention to be closer to its visitors. A total of 4.2 million people will live within the new mall’s catchment area. In addition, the ratio of retail space per 1,000 residents in Moscow is still much lower than in most European cities. Average retail space in Russia is 327 sqm per 1,000 residents, whereas the average in Western Europe is 690 sqm, which highlights how far the Russian market is from retail saturation point.
IKEA Shopping Centres Russia’s objective is to be the strongest retail destination in each of its local markets by 2025. “This will be achieved by offering the best food, leisure, family friendly environments, sustainability, customer care and a multi-channel experience for our customers,” said Michaely.
“We also are working to complement customer shopping habits, at MEGA Mytischi for example, services such as banking, bakeries, post office and beauty salons will play an everyday role. 6,000 sqm of sports-related brands and activities will also be incorporated including spa facilities, gym classes and rock climbing,” Michaely continued.
MEGA Mytischi will be IKEA Shopping Centres Russia’s fourth super regional mall in Moscow region, and its 15 in total. Footfall at all 14 MEGA malls rose by about 4 percent in financial year 2014 to more than 270 million, and has risen by 27 percent over the last five years. Tenant sales at MEGA malls have grown by around 6 percent in 2014 and 44 percent in the last five years.