MOSCOW
The Russian Shopping Centers Council (RCSC), an umbrella organization representing developers, shopping center owners and operators of retail chains, said it was negotiating with its corresponding representatives in Turkey, China, India and in Iran to find alternatives to Western brands.
“A list of foreign companies that have temporarily ceased operations in Russia has been sent to them so that suitable equivalents can be found,” said a statement on the RCSC website on March 25.
“Over time, this will help complement or completely replace products from defunct brands with products of similar quality and design.”
Dozens of major brands have suspended operations in Russa or left the country since Moscow launched a “special operation” to invade Ukrainian territories on February 24.
At an RCSC meeting of more than 100 market players, the challenges facing Russian retailers were discussed, according to local media.
RCSC quoted Igor Maltinsky, director of development at Melon Fashion Group, as saying that the main challenge faced by domestic retail companies was the uncontrollable growth of production costs, due to the considerable increase in the cost of supply and logistics.
Melon owns four fashion brands – Zarina, Befree, Love Republic and Sela – and had 846 stores across Russia and former Soviet republics at the end of 2021. It had planned to hold an initial public offering (IPO) this year .
Western sanctions have hampered supply chains and triggered panic buying among some Russians, with drug and sugar shortages reported.
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