IKEA Shopping Centres Russia is investing €260 mln to develop a new 215,000 m2 modern shopping mall in Mytischi, north east Moscow.
IKEA Shopping Centres Russia is investing €260 mln to develop a new 215,000 m2 modern shopping mall in Mytischi, north east Moscow.
MEGA Mytischi’s development is part of a wider investment programme being undertaken by IKEA Shopping Centres Russia between now and 2020. The company has a long-term commitment to Russia and its growing retail market.
IKEA Shopping Centres Russia already has MEGA malls in 11 of Russia’s 15 ‘Millionniki’ cities with over one million people. Plans for new MEGA malls will continue to focus on cities with a population of over one million, but the shopping centre developer has confirmed it is also looking closely at cities with populations of over 500,000.
Armin Michaely IKEA Shopping Centres Russia’s general director commented: 'The €2 bn investment programme will see us build new, modern, sustainable MEGA centres throughout Russia in the coming years. We have also embarked on a major upgrade programme at our existing centres with brand new food court concepts and mall extensions.'
STRONGEST RETAIL DESTINATION
IKEA Shopping Centres Russia’s objective is to be the strongest retail destination in each of its local markets by 2025. 'This will be achieved by offering the best food, leisure, family friendly environments, sustainability, customer care and a multi-channel experience for our customers,' said Michaely.
Scheduled to open in early 2018 and expected to attract 25-30 million visitors per year, Mega Mytischi will be anchored by an IKEA store along with other DIY and hypermarket anchors.
MEGA Mytischi will be split over two floors, with 40% of space being reserved for anchor stores, and the remaining 60% providing space for a huge variety of retailers, restaurants and services.
More than half of the gallery will be available for fashion retailers, with a focus on mid-range ‘best of the high street’ brands. Eating out continues to grow in Russia, and MEGA Mytischi will offer food and beverage space for tenants with proven experience of increasing dwell time and driving footfall. The mall will also provide more than 10,000 parking spaces that will be a significant attraction to Moscow’s many car driving families.
A total of 4.2 million people will live within the new mall’s catchment area. In addition, the ratio of retail space per 1,000 residents in Moscow is still much lower than in most European cities. Average retail space in Russia is 327 m2 per 1,000 residents, whereas the average in Western Europe is 690 m2, which highlights how far the Russian market is from retail saturation point.
MEGA Mytischi will be IKEA Shopping Centres Russia’s fourth super regional mall in Moscow region, and its 15th in total. Footfall at all 14 MEGA malls rose by approximately 4% in financial year 2014 to more than 270 million, and has risen by 27% over the last five years. Tenant sales at MEGA malls have grown by approximately 6% in 2014 and 44% in the last five years.
IKEA Shopping Centres Russia, part of IKEA Group, has developed its chain of shopping centres under the brand name MEGA, throughout Russia. It provides about 2 million m2 of retail space, and more than half of its tenants are represented by international retailers. Each mall typically comprises around 130,000 m2 with about 200 retailers and each MEGA Centre benefits from an IKEA store as an anchor, together with a food hypermarket and a DIY store.
MEGA Shopping Centre tenants that have entered Russia for the first time, or expanded into Russian regional cities in 2014 include: Violeta by Mango, which launched in MEGA Kazan in spring 2014. Lefties the Inditex fashion retailer that came to MEGA Teply Stan, MEGA Belaya Dacha and MEGA Dybenko in August 2014. In addition Penti, the Turkish women’s fashion retailer, opened its first shop in Russia in MEGA Khimki in July 2014.
Other retailers that have used MEGA malls to enter Russia for the first time, expand in the country, or have recently extended their leases at MEGA malls include: Zara, American Eagle Outfitters, Victoria’s Secret Beauty & Accessories, The Body Shop, Debenhams, Steve Madden, Vans, The North Face, Nautica and others.