Of gone luxury

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Photo: Google Street View

Luxury brands are closing shops at the most expensive street of Moscow — Stoleshnikov lane in Moscow, writes RBC. To do this they forced prohibition on Parking, which created inconvenience for the main auditorium.

The publication refers to the consultants of the real estate market and the announcement of the letting of vacant retail space in Stoleshnikov pereulok. So, with the streets moved stores Michael Kors, Chaumet, Moncler and Jimmy Choo. Soon to change the address of the boutique is going to another brand — Van Cleef&Arpels. He has already chosen a new room in Petrovsky pereulok. For the first quarter of 2018, the share of vacant retail space increased by 13 percent.

The main reasons for the closure of luxury stores is the inconvenience Stoleshnikov lane for the main auditorium. Since in 2012, the street became pedestrian-only and a ban on Parking, customers became inconvenient to get to the shops. Boutiques for several years, record the rpm drop.

Rates for the rental of offices remained at the same level. Moreover, they are set in foreign currency, which in 2014 has strengthened significantly against the ruble, while on other streets in the city center the price was converted to rubles. The only concession, which went to the owners of the premises — fixation of rate at a certain level.

In the result, the rental rates on Stoleshnikov pereulok reach 3-5 thousand euros per square meter per month. This makes the most expensive street in Russia and 15th in the world (the leader of the Fifth Avenue in new York). Leaving brands move not only on neighboring streets, but in the expensive shopping centres such as GUM and TSUM.

At the end of July it became known that sales of the world’s manufacturers of luxury items in Russia by the end of 2017 dropped after an abnormal growth a year earlier. With the fall in revenue affected almost all subsidiaries of international brands.

Video, photo All from Russia.

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