By late March, activity around shopping centers in Moscow and St. Petersburg showed a noticeable uptick. Visitor numbers in St. Petersburg rose by roughly 4 to 6 percent after a sustained period of decline, according to Focus Technologies data cited by Kommersant. This shift signaled a turning point after a lengthy drop in foot traffic, when international brand outlets had begun to close and consumer enthusiasm had cooled.
Reportedly, Mikhail Vasiliev, who leads research and consulting at Focus Technologies, noted that the late first quarter marked the emergence of a positive trend. The rebound suggested that the prior downturn in mall traffic had begun to ease, with a portion of international stores shuttered during the downturn reopening under new branding or with refreshed concepts. In parallel, the market welcomed a wave of new openings from local brands, which contributed to a renewed interest from shoppers and a more varied retail mix in the centers.
Analysts observed that the trajectory by the end of March this year showed traffic in shopping centers up by about 17 to 20 percent relative to the same period last year. Retailers also reported more robust sales, underscoring a broader revival in foot traffic and consumer spending. Yet, the gains were not uniform. While some locations benefited from new openings and name changes that breathed fresh life into vacant storefronts, others faced a more cautious consumer environment shaped by broader economic conditions. The return of brands previously exiting the market, alongside the entry of local operators, helped widen the competitive landscape and provided shoppers with more options and reasons to visit malls again.
Industry observers cautioned that sustaining a meaningful growth pace would be challenging. Projections suggested that traffic increases of five to seven percent by year-end would be a solid outcome, given the ongoing headwinds from inflation, exchange-rate fluctuations, and consumer confidence. Yet the pace of participation growth remained constrained by the macroeconomic backdrop, logistics considerations, and the evolving retail landscape as brands experiment with store formats and regional strategies to attract buyers.
News from market participants indicated that the Russian commercial real estate sector was gradually regaining momentum. The reopening of outlets by fashion operators, the expansion of food service concepts, and the approach of specialized retailers to open new spaces all contributed to a more dynamic environment. In this context, shopping centers began to host a broader mix of tenants and activities, reinforcing the idea that malls can serve as multi-purpose destinations beyond mere shopping, especially in a climate of renewed consumer activity and competitive pricing. These shifts point to a potential stabilization in performance and a cautious optimism about the commercial real estate outlook, even as the broader economy continues to navigate its unique challenges. (Focus Technologies)