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Retail Market Developing at Fast Pace

Published: March 6, 2007 (Issue # 1251)



  • Customers walk through one of the two IKEA stores already opened in St. Petersburg.
    Photo: Alexander Belenky / The St. Petersburg Times

St. Petersburgs retail market today is one of Russias most dynamic. Growing personal incomes coupled with a lack of quality shopping space in the city mean that developers and retail chain operators, both Russian and international, are actively trying to establish their presence on the countrys second biggest market.

However, for a city of 4.6 million inhabitants, St. Petersburgs quality market remains very small and is currently at a very early stage of its development. In mid-2006 the total area of the citys international-standard shopping centers (i.e. at least 5,000 square meters in size, with a quality selection of tenants and managed as a single project) was only 370,000 square meters, while vacancies there were very low. In addition to that, street retail along the citys main shopping corridors (Nevsky Prospekt, Bolshoi Prospekt, Ligovsky Prospekt and Sadovaya Ulitsa) is currently at 21,000 square meters.

This means that in todays St. Petersburg there is only 80 square meters of quality retail space per 1,000 inhabitants this is one of the lowest figures in Europe. For comparison, Warsaw has 600 square meters, Madrid 300 square meters and Berlin 350 square meters. By the amount of quality retail space per 1,000 inhabitants St. Petersburg is not only behind Moscow with 120 square meters, but Samara and Kazan as well and is now on the same level as the majority of other cities with a population of 1 million or more, such as Yekaterinburg, Nizhny Novgorod or Volgograd. Taking the citys size and importance into account, it becomes obvious that St. Petersburg has a huge, yet unrealized, retail market development potential.

Like in any other city, the retail space on offer in St. Petersburg is not limited to shopping malls and boutiques on main shopping streets. The entire market, which also includes open-air marketplaces, kiosks, neighborhood grocery stores and pavilions, is estimated at 4 million square meters. As the city develops and local consumers become more discerning, demanding better service and a better choice of quality retail, the share of sub-standard properties will decrease. In terms of the sophistication of its shopping centers and the overall development of the market, St. Petersburg is now three to five years behind Moscow, but is quickly closing the gap and the situation is likely to change dramatically in the next 1 1/2 to 2 years.

A number of large-scale Western-standard shopping center projects currently under development some of these concepts are not present in Moscow yet will make St. Petersburg one of the retail capitals of Russia. According to our estimates, by late 2008 the amount of quality shopping center space in the city may reach about 1.4 million square meters (compared with 2.7 million square meters that Moscow is scheduled to have in two years).

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ALL ABOUT TOWN

Thursday, July 24


Liliana Modiliani, a well-known Russian stylist, will talk about choosing clothes that fit during her lecture at 7 p.m. at the Pryamoy Efir art club, 13 Viborgskoe Shosse.



Friday, July 25


Discuss Russias economic and political prospects for 2014 during a Business Breakfast organized by SPIBA at 9.30 a.m. in the Bank Saint-Petersburg office at 64


Malookhtinsky Prospekt.


Start your weekend with adorable miniature pigs at the Squealing Pig festival at 7 p.m. this evening in the Karl & Friedrich restaurant, 15 Iozhnaya doroga, on Krestovsky Island.



Saturday, July 26


Hundreds of brand-new and retro cars, drag and drift shows, test drives and karting are planned for the Avtobum-2014 festival, which will take place in front of the RIO shopping center at 2 Fuchika Ulitsa.


Participants in todays SaniDay Summer competition will impress visitors with their hand-made, unusual and hilarious boats, which will race at the Igora Resort near the 54th kilometer on Priozerskoe Shosse.


Metro Family Day will include both serious lectures for adults and master-classes for children, making the event interesting for the whole family. To participate, come to Kirov Park on Yelagin Island.


Photography will be the focus of todays Photosubbota, which features lectures by famous photographers, meetings with photo schools and studio representatives, and participation in a photography competition. The event starts at noon at Petrokongress, 5 Lodeynopolskaya Ulitsa.


If you like cycling, make sure to visit the Za Velogorod Festival with its retro bike exhibition, market and live music. The second round of the Leningrad Criterium race will also take place during the event at Petrovsky Arsenal in Sestroretsk.



Sunday, July 27


Navy Day will be celebrated with a weapon and military transportation exhibition, self-defense master classes and concerts. The event starts at 1 p.m. in the 300th Anniversary Park of St. Petersburg.



Monday, July 28


Dont miss a chance to see the latest achievements in robotics during the RoboDom interactive show, exhibiting more than 150 robots. The show will be at BUM center, 22/2 Gzhatskaya Ulitsa, until Aug. 3. The entrance ticket costs 350 rubles ($10).



Tuesday, July 29


A video of a Queen concert from 1986 will be shown today at 8 p.m. in Yaschik, 50/13 Ligovsky Prospekt.



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