142 new international brands entered the Russian market during the last three years. According to the latest retail research How active is the Russian Retail Market? by global property advisor CBRE, new market entrants have opened around 390 new stores since the beginning of 2013 and are planning to open, at least, 70 more by the end of 2016. For example, such retail chains as Dippin Dots, Krispy Kreme, Takko Fashion, Anta Sports, Bimbus, Deichmann, Forever 21, Monki, and Derimod have already announced further development in Russia.
Over 52 new brands entered the Russian market in 2015. This is only 2 brands less than a year earlier. 12 new retail chains have announced plans to enter the Russian market in 2016.
According to CBRE research, 31 percent of most active brands are retail chains of fashion segment. In 2015 such chains as Circle of Gentlemen and Wrangler opened their first mono stores in Russia. Malo, Henry Cotton’s, MCS, Nelva, and Tsumori Chisato also entered the Russian market. Usually new players open 2-3 stores at once.
Despite Moscow is the first city to open in 85 percent, 17 new retail chains opened their first stores in the Russian regions. This choice is mainly due to lower rental rates, comparable level of quality supply and relatively high purchasing power.
Michael Rogozhin, Managing Director of Retail Department CBRE in Russia, commented: “During 2013-2015, 2014 was the most active year for new entries when 54 new brands entered the market. In 2015, despite negative economic conditions, the activity of international retail chains and the interest to Russian retail market have been saved. 52 new brands have entered the market during the year. Nearly 60 percent of new players are retail chains of middle and budget price segments. Consumer goods of these segments are in high demand in Russia. The decrease in real disposable income causes an increased demand for new budget brands. New retail chains will highly likely continue to enter the market in 2016 and develop as consumer demand stabilizes, both in Moscow and in regional markets. We expect in 2016–2017 about 30 new brands to enter the Russian market. In fact, this figure could be higher.”