The Return of Fashion Giants to Russia: A Strategic Move Amid Changing Political Landscapes
Moscow — In a significant development for the Russian retail market, the Union of Shopping Centers has made a formal proposal urging global fashion giants Uniqlo, H&M, and Inditex to consider re-entering the Russian market. This appeal comes as the current geopolitical climate shows potential signs of change, which could facilitate the return of these brands.
According to the Moscow-based state media, the Union of Shopping Centers is actively encouraging Uniqlo, H&M, and Inditex—which owns prominent brands like Zara, Massimo Dutti, Bershka, Oysho, and Pull & Bear—to reassess the possibility of resuming their operations in Russia. The Union’s letter highlights the readiness of more than half of Russia’s largest shopping centers to accommodate these brands by offering vacant premises for immediate rent or freeing up space promptly. The letter also emphasizes the shopping centers’ interest in establishing long-term partnerships with these international retailers, recognizing their significant role in attracting customers.
“We are prepared to facilitate dialogue, address logistical challenges, and support a smooth reintegration into the market. If your companies are considering resuming operations in the Russian retail sector, we invite you to discuss potential opportunities, including tailored leasing terms, location preferences, and market-specific strategies,” the Union stated in their letter.
The Japanese company Uniqlo, in particular, was highlighted as a highly sought-after anchor tenant that attracts significant foot traffic, according to Pavel Lyulin, Vice President of the Union of Shopping Centers. Lyulin pointed out that while some local brands have attempted to fill the void left by these international retailers, not all have succeeded. For instance, the brand Just Clothes, which aimed to mimic Uniqlo, is now closing its stores. This highlights the ongoing demand and preference for established international brands.
Natalia Kermedchieva, another Vice President of the Union, expressed optimism about the potential return of all the departed brands. She noted that for this to happen, the lifting of anti-Russian sanctions would be essential. She suggested that a return to the Russian market could be facilitated through local partners, similar to the approach taken in the UAE, where major brands like IKEA operate through partnerships.
Kermedchieva further recalled that Uniqlo had expressed a strong desire to remain in the Russian market, emphasizing the importance of providing high-quality, comfortable clothing to consumers. “This demonstrates that Russia was and will remain an important market for the company,” Kermedchieva concluded.
The call for the return of these fashion giants is not limited to Russia alone. The Shopping Centers Association, representing 800 malls in Russia, Belarus, and Kazakhstan, has also reached out to these brands. The Association’s letter, seen by RIA Novosti, addresses potential changes in the political landscape and their implications for the brands’ return.
This initiative coincides with ongoing diplomatic efforts between U.S. President Donald Trump and Russian President Vladimir Putin, aimed at restoring bilateral relations. The Association acknowledged the challenges posed by Western sanctions but expressed readiness to mediate and provide logistical support for the brands’ reintegration into the Russian market.
The possibility of the return of these international retailers gained further traction with reports of interest from other global companies. Last week, representatives from the commercial real estate sector mentioned receiving inquiries from unidentified Western fashion retailers regarding a potential return to Russia by the end of 2025.
The exit of hundreds of Western companies from Russia following the full-scale invasion of Ukraine in February 2022 created a significant void in the market. Moscow’s introduction of steep mandatory discounts and exit fees for departing firms further complicated the situation. However, as the geopolitical landscape evolves, there is renewed optimism about the return of these brands.
The return of Uniqlo, H&M, and Inditex to the Russian market would not only rejuvenate the retail sector but also strengthen the ties between Russia and the global fashion industry. It remains to be seen how the political and economic conditions will unfold, but the proactive efforts of the Union of Shopping Centers and the Shopping Centers Association signify a strong desire to bring back these iconic brands to Russia.
