Chanel Moves Toward Exit from Russian Shopping Malls
Chanel is actively negotiating with mall owners to end its presence in Russia. The French luxury house plans to open vacant rental space that has remained unused since 2022, according to Pavel Lyulin, vice president of the Association of Shopping Centers. He spoke to a major Russian publication about the evolving situation. News outlets have reported this development as a significant step in Chanel’s strategy in the region.
The measures cover both cosmetics boutiques and clothing stores, including Chanel’s flagship outlet on Petrovka Street in Moscow. The total number of affected locations is about ten, with venues in Central Mall and Vremena Goda cited among them. There are also Chanel outlets in St. Petersburg. At present, the parties are discussing terms for Chanel’s departure from these shopping spaces.
Chanel is currently in negotiations with landlords to wind down the collaboration. In March 2022 the brand paused the expansion of its stores, continuing to pay rent but stopping sales. Only corner spaces within cosmetics and perfume shops remained operational, and Chanel did not directly manage those sales points.
During the period when operations in Russia were halted, Chanel may have paid average rents under existing agreements, with potential new terms considered from early 2022 onward. Industry experts note that Chanel now holds long-term contracts that may impose strict exit penalties or, in some cases, no such penalties at all. This analysis came from discussions with market specialists and was reported by Izvestia.
Experts highlight that terminating cooperation could require settling the full rent through the end of the contract period. Some lease agreements may have rent terms fixed in U.S. dollars. Overall, observers describe the potential exit as a sizeable financial challenge for a global brand seeking to disengage from the Russian market.
Earlier, Chanel remained seen in the public eye mainly through its public appearances and campaigns following recent rehabilitation of its regional operations, with limited makeup showcases temporarily paused.
Market watchers emphasize that Chanel’s decision reflects broader shifts in luxury retailers as the brand reassesses international footprints, balancing brand integrity with the realities of operating in a volatile market. The outcome of the current discussions will determine how the remaining retail spaces are managed and how Chanel communicates its ongoing strategy to luxury consumers in Russia and neighboring markets.