Uniqlo sorts out the wardrobe – Business – Kommersant

Japanese clothing manufacturer and retailer Uniqlo, which suspended operations in Russia in the spring of 2022, may have decided not to resume operations in the country. The company has terminated lease agreements for some shopping centers, and it may take several months to wind down the entire business. The vacated space may be occupied by department stores or clothing chains of the mass segment.

The fact that the Japanese clothing manufacturer and seller Uniqlo decided to leave Russia and does not plan to reopen its stores, Kommersant was told by a source in the commercial real estate market. According to him, this is already known to local employees of the brand. Another Kommersant source in the real estate market says that Uniqlo was thinking about leaving the Russian Federation completely in the fall of 2022, but it was originally planned to close only unprofitable points. January 2023 “News” wrote about Uniqlo’s intention to keep five stores in the country. In the Russian Uniqlo, Kommersant was not answered, it was not possible to contact the owner of the Fast Retailing brand.

Alexey Vanchugov, managing partner of Vanchugov & Partners, says that Uniqlo notified the owners of the premises a few months ago of its intention to close stores, but retains contracts until a new tenant is found. After that, according to him, the agreements can be terminated in two to three months. According to Mr. Vanchugov, the network is interested in servicing contracts so as not to accumulate rights of claim from the owners of the premises, which could complicate the sale of assets if such an option were available.

Marina Malakhatko, head of the CORE.XP retail department, notes that Uniqlo’s decision to wind down its business in Russia was apparently inevitable. The political situation has not changed, and after almost a year after the suspension of work, there is no point in continuing to pay rent and maintain staff, she says. According to Ms. Malakhatko, Uniqlo will need from four months to a year to curtail work in the Russian Federation. According to her, lease agreements for a number of shopping centers have already been terminated, and some more are under discussion. The product, which was imported to Russia before March 2022, was sold through online platforms, she adds.

Fashion Consulting Group CEO Anna Lebsak-Kleymans notes that it will be difficult to literally replace Uniqlo due to the company’s technology, pricing policy and the quality of basic models. According to her, large Russian brands of the mass segment, such as Sela and Gloria Jeans, as well as local brands O May, Urban Tiger, SHU, can be close alternatives. Marina Malakhatko adds that in terms of turnover per square meter of rented space, Uniqlo was one of the most successful fashion retailers in its segment in the country. According to her, Russian department stores or points of large fashion chains of the mass segment may open in place of the brand’s stores. Uniqlo stores are usually located in good locations with high traffic, Alexey Vanchugov adds.

Alina Savitskaya, Alexandra Mertsalova