IKEA Russia began to unilaterally notify the shopping center to terminate the lease agreement.This magazine reports Vedomosti Refer to sources in the commercial real estate market.
Nearly all of the malls where the chain and design studio are based have received termination letters, one of the sources said. Early termination of contracts will face huge fines due to early closures - malls won't find replacement landlords anytime soon, so 3-6 months' rent will be charged in addition to fines.
Formerly a Dutch company Announce Just about selling factories and firing Russian employees. However, news of the store closures was not reported - "IKEA's retail operations in Russia remain suspended":
Earlier, employees reported a planned shutdown until Aug. 31.
IKEA stores are managed by Ingka. In addition to IKEA, it also owns 14 large shopping centers in the Russian Federation. The company's press service said the latter would continue to work. The IKEA store closures, however, declined to comment.
IKEA has 26 stores in 12 cities in Russia.
Large international companies are forced to exit a market with growing sales, which is not good for the market itself. This means several things at the same time:
- Suppliers that lost major customers began raising prices to make up for the losses.
- As a result, the reduction in competition has an adverse effect on pricing and the quality of the products sold - the remaining parties have less incentive to keep prices low and high quality.
So in this case, the speech that someone else will come soon is rather naive. Even now, using the example of Vkusno i Tochka, you can see that maintaining McDonald's prices is impossible. The same will happen to Russian companies, which will take a share of Pepsi and Coca-Cola. Most likely, the company replacing IKEA will do the same.
According to rumors, Hoff is eyeing the chain. But can the company follow IKEA's standards and supply the Russian market with mass-produced but stylish and high-quality furniture and accessories?
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