The owner of Bosco di Ciliegi doubted the ability of brands from the Russian Federation to replace Western boutiques in GUM

The founder of Bosco di Ciliegi, Mikhail Kusnirovich, said during the plenary session of the Brics+ Fashion Summit that he is ready to free up space in GUM for foreign boutiques that have closed in Russia for Russian brands. At the same time, he doubted that Russian designers would be able to fully replace Western luxury brands.

“Let’s say I’m ready to make room for Chanel for a Russian designer. Who is ready to take on the responsibility of coming to the first line of GUM and, in addition to all the marketplaces, starting to create their own?” – said Mikhail Kusnirovich (quote from RBC). According to him, for a full replacement it is necessary not to “fill” the boutiques one-time, but to update the stores with inventory every season, as well as train sellers and pay rent.

Mikhail Kusnirovich cited the example of the opening in GUM, on the site of the Louis Vuitton boutique, of the flagship store of the Dynamo football club – Dynamo STORE. The store opened in GUM on April 19, after Louis Vuitton completed its lease contract.

Mr. Kusnirovich founded Bosco di Ciliegi in 1991, after which he rented the GUM building on Red Square. In 2004, Bosco di Ciliegi bought the trading company of Moscow GUM. Currently, a controlling stake of 97.34% in GUM belongs to Mikhail Kusnirovich.

Since the beginning of Russian military operations in Ukraine, almost all luxury brands have left the Russian market, including Chanel, Dior, Prada, Tiffany, Bvlgari, Fendi and Hugo Boss. The boutiques retained the premises that were previously rented for selling goods. In 2022, the revenue of GUM Trading House JSC decreased to 6.5 billion (in 2021 – 7.5 billion rubles), net profit – to 328 million (in 2021 – 1.8 billion rubles).