Chanel has begun to reduce the number of spaces rented for its stores in Russia, Kommersant has learned. The manufacturer did not officially announce its complete withdrawal from the Russian market.
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According to real estate market sources to the publication, the company is negotiating the termination of the lease contracts for boutique premises.
In 2022, the retailer announced the suspension of activities in the Russian Federation due to the military conflict between Russia and Ukraine. However, the company continued to rent land. Thus, the income of Chanel LLC decreased by 75.6%, to 4.5 billion rubles. The retailer posted a net loss of 1.8 billion rubles.
If at the beginning of 2022 Chanel operated 17 boutiques, mainly in the capital, today information about some of them has disappeared from the company’s website. There is no further information about the stores in the Afimol, Mega Teply Stan, Evropeisky and Metropolis stores in Moscow.
Afimol reported that the company had terminated the contract, the terms of termination were called confidential information. Now the vacant space has been occupied by the Furla chain.
Two other sources said Chanel is currently negotiating to give up the lease on the Geneva House business center at Petrovka 7, where the company’s flagship store is located.
Today, despite sanctions, it is still possible to buy luxury brand items in the Russian Federation, notes Ekaterina Nogai, head of the research and analysis department at IBC Real Estate. These products arrive at TSUM in parts.
For example, a branded jacket arrives in several stages: first the main part, then the collar, belt, etc. However, due to European restrictions, each piece should not cost more than €300.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
