Stores outweigh brands

Stores outweigh brands

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Russian store operators of outgoing Western brands continue to look for options to fill the space. For example, Fiba Retail may launch a Turkish premium clothing brand to replace American Gap, whose outlets are due to close after the sale of leftovers. Experts warn that it will be difficult to win consumer loyalty to new brands, and competition in the premium segment has decreased less than in the mass segment.

The Turkish Fiba Retail Group, which opened franchised Marks & Spencer and Gap stores in Russia, may bring new brands from Turkey to the market to fill the vacated space. Three sources in the fashion market told Kommersant about this. According to two interlocutors of Kommersant, we can talk about the brands of the Turkish Beymen Group, which are positioned in the premium class, Beymen Club and W Collection. Under the brands, men’s and women’s clothing, shoes and accessories are produced. For example, in Turkey, a Beymen Club women’s coat costs about 20 thousand rubles. at the current rate.

Beymen Club and W Collection stores occupy about 200–400 sq. m, which generally corresponds to the areas of Russian Gap outlets, one of the Kommersant sources indicates. Since the end of October, Fiba Retail has also published a number of vacancies for employees in the clothing stores of new brands of the premium segment in the Moscow shopping centers Aviapark, Afimall and Metropolis in the profile on the HeadHunter portal.

After the outbreak of military operations of the Russian Federation in Ukraine and a new wave of sanctions, the British Marks & Spencer decided to leave Russia and withdraw the brand from Fiba Retail. American Gap in the spring announced the suspension of new deliveries. The other day, a Fiba Retail spokesman told Reuters that the company was curtailing the development of Gap stores in the Russian market after the remaining inventory was exhausted. It was not possible to contact Fiba Retail via the feedback form on the site on Wednesday.

Turkish clothing brands have become more actively interested in the Russian market after the suspension of work and the departure of part of the global fashion chains from the country. Earlier it became known that the distributor “Jamilko” replenished its portfolio with Turkish brands of women’s clothing Ipekyol, Machka and Twist. The first stores of some of these brands are to open in Afimoll (see Kommersant of October 4).

Nadezhda Tsvetkova, Head of CORE.XP retail space leasing, adds that Turkish fashion retailers are currently represented in Russia mainly in the medium and mass segments, although there is a free niche on the market for premium brands from this country. But, the expert adds, new brands will need to attract loyal consumers, which will not be easy.

Alexey Vanchugov, managing partner of Vanchugov & Partners, adds that the premium segment of the Russian fashion market has suffered little damage this year. According to expert estimates, no more than 20% of retail outlets in this segment were closed. “Premium clothing stores in Russia were mainly developed by Italian companies, which for the most part did not stop their work in the country,” explains Mr. Vanchugov.

Nadezhda Tsvetkova doubts that Fiba Retail plans to conduct an active regional expansion. Most likely, the company will focus on development in Moscow and St. Petersburg, where most of their stores are located, and there is also a high proportion of the solvent population, she said.

Store operators of outgoing brands often change their concept, trying to maintain a common focus. For example, Turkish FLO Retailing is launching outlets with Sneaker Box sports shoes on the site of former Reebok stores. And some Levi’s stores are reopening under the JNS brand after a change in management.

Alina Savitskaya

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