ASIAdocument.write(“” + m[today.getMonth()+1]+ ” “+ today.getDate()+”, ” + theYear + ” “);HOMECHINAWORLDBUSINESSLIFESTYLECULTURETRAVELSPORTSOPINIONREGIONALFORUMNEWSPAPERChina Daily PDFChina Daily E-paperChina Daily Global PDFChina Daily Global E-paperLifestyleFashionCelebrityTravelFoodHealthVideoPhotoLifestyle / NewsThe new capital of malls: Moscow
By Andrew E. Kramer ( China Daily/Agencies )
Updated:2013-01-22 09:19:16Comments Print Mail Large Medium SmallRussians spend 60 percent of their pretax income on retail. Shoppers at the Mega Belaya Dacha mall and discount outlets outside Moscow. Photographs by James Hill for The New York TimesMOSCOW – Shoppers who find that 250 stores arent enough can go ice skating, watch movies or even ride a carousel, all under a single roof.”I feel like Im in Disneyland,” Vartyan E. Sarkisov, a shopper toting an Adidas bag, said recently while making the rounds of the Mega Belaya Dacha mall outside Moscow.Instead of bread lines, Russia is known these days for malls. They are booming businesses, drawing investments from sovereign wealth funds and Wall Street banks, most recently Morgan Stanley, which paid $1.1 billion for a single mall in St. Petersburg.One mall, called Vegas, rose out of a cucumber field on the edge of Moscow and became, its owners say, larger than the Mall of America in Minnesota if the 390,000-square-meter American malls three-hectare amusement park is not counted in the calculation of floor space.Moscow, the new capital of malls, has more floor space in malls than any other European city, with 3.15 million square meters. And a new record-setter is going up. Avia Park in northwest Moscow will have 464,500 square meters of interior space including covered parking, which will make it the largest mall in the world outside Asia.Another Russian mall scored a different kind of victory: the Mega Tyoply Stan shopping center drew 57 million visitors at its peak in 2007, well ahead of the 40 million annual visits reported by the Mall of America.So, the market is buzzing. Morgan Stanley is in talks to buy another mall, the Metropolis in Moscow, for more than $1.2 billion, according to real estate professionals.Courses for horsesAs American malls struggle in old age, many of their stores vacant, Russias shopping centers are just now blossoming into their boom years, nourished by oil exports that are lifting wages.”Its 1982 all over again in Russia,” said Lee Timmins, the country representative of Hines, a Texas-based real estate group that is opening three outlet malls in Russia, referring to the heyday of the American mall experience. Russians, he said, love malls.The mall boom illustrates an extraordinarily important theme in Russian economics these days.The growing crowds at malls, and the keen interest in Russian malls on the part of Wall Street banks, are signs that the emerging middle class that made up the street protests against Vladimir V. Putin in Moscow last winter is becoming a force in business as well as politics.”Over the past 10 years, Russia has turned into a middle-class country,” said Charles Slater, an analyst at Cushman & Wakefield, a global commercial real estate firm. “What better to do than go to an enclosed, warm environment with many things on offer, whether that be bowling, cinema or food courts, things the customers have not been used to in the past?”Moscow now has 82 malls, including two of the largest in Europe. Both are owned by Ikea Shopping Centers Russia, the branch of the Swedish assemble-it-yourself furniture franchise that manages 14 malls here.In Russia, malls are still novel; the first Western-style suburban mall opened in 2000. They are now changing hands as developers sell to institutional investors, shedding light for the first time on their high values. Morgan Stanley is in talks to buy the Metropolis mall in Moscow for more than $1.2 billion, according to real estate professionals.Fresh ButterflyAt the core of the attraction for investors is the rising disposable income of Russians, nudged along by policies favoring the middle class, lest their challenge to President Putins rule intensify. Russia has a flat 13 percent income tax rate. Most Russians own their homes, a legacy of post-Soviet privatizations, and so pay no mortgage or rent. Health care is socialized.Not surprisingly, then, Russians have become fanatical shoppers. Russians spend 60 percent of their pretax income on retail purchases, a category that includes food, according to Jones Lang LaSalle, a real estate consulting firm. The country in second place in Europe is Sweden, where retailing accounts for 40 percent of total private spending. Germans, by comparison, spend 28 percent of their salaries shopping, according to Jones Lang LaSalle.A megamall built for Russians, not surprisingly, is subtly distinct from the idealized urban environment preferred by Americans, a result of careful analysis of consumer behavior and Russian retailing desires.Most Russian malls have a huge grocery store as an anchor tenant, rather than a department store. Russians are still struggling to find groceries in their neighborhoods. And the sight of row upon row of groceries, stacked to the ceiling, surely soothes a lingering sore spot in the soul of Russian women who were compelled, just two decades ago, to serve their children such items as canned seaweed and powdered milk.But Olga N. Zaitsova, 55, who was in the Mega Belaya Dacha mall with her granddaughter Anastasia, said she came every weekend, drawn by the warm play area for toddlers. “Its just not comfortable to be outside when its so cold,” she said.When she shops, she said, “now we buy things we want, not things we need.”The New York Times0Tagsshopping mall Moscow lifePhotoAroma of the season: Osmanthus- infused dishesActress Li Bingbing poses for fashion magazineChinese brands shine at Milan Fashion WeekXianghai Nature Reserve in Jilin ideal for nature loversScenery of Maor Mountain National Forest Park in NE ChinaIndulged in the golden color of autumn in ShanxiArtFilmCelebrityFashionFoodTravelXiang Jings solo show displays her creative evolutionSee emotions through a new perspectiveChrysanthemums from Kaifeng bloom in the Forbidden CityHair stylist creates novel art of Potala PalaceArtworks of printmaking on display at TaimiaoLondon gallery set to join a Shanghai art fairSketches of artArtist uses snow to depict urban plightZhang Daqian makes waves as his ink works go under the hammerArtist Zeng Fanzhi bares his artistic soulViolin invitational competition kicks off in SichuanPhotographers tell stories of homeStreet smartMcDull new film set to premiere on Mid-Autumn FestivalChinese films nominated for top honors at Tokyo International Film FestivalA Chinese Odyssey: Part III continues to lead Chinese box officeFilm forum eager to boost storytellingUsing movies to forge bondsUndeserving winners by any reasonable standardsFilm on Mekong massacre out soonStar swimmer Fu Yuanhui bites snake in Bears Running WildNew series finds drama in unlikely wartime friendshipBeckham ready to cook on BTVChina to curb star-oriented pricing of TV dramasAngelina Jolie files for divorce from Brad PittActress Liu Yifei spotted in MontrealActress Li Bingbing poses for fashion magazineAngelababy poses photos at Summer PalaceStar swimmer Fu Yuanhui bites snake in Bears Running WildBeckham ready to cook on BTVGolden Rooster and Hundred Flowers Film Festival held in TangshanClosing ceremony held for 3rd Xian Silk Road Intl Film FestivalActor William Chan poses for fashion magazinePitt-Jolie divorce: $25m worth of art collections at stakeJapans Ai Fukuhara announces marriage to Taiwanese table tennis playerEason Chan set to conclude his world tour with two Beijing showsMilan Fashion Week: Dolce & Gabbana Spring/Summer 2017Milan Fashion Week: Prada Spring/Summer 2017Chinese brands shine at Milan Fashion WeekYoung jewelry designers display their artworks in BeijingChu Yans creations presented at Asia-Europe fashion week in UrumqiMoschino Milan Fashion Week Spring/Summer 2017Finding fantastic fashion far awaySilk Road fashion show at Gansu scenic spotDistinctly Chinese elements stealing spotlightDistinctly Chinese elements stealing spotlightHow street style has upset fashions traditional hierarchyFashion show held at Yellow River stone forest national geological parkAroma of the season: Osmanthus- infused dishesChinas mind-boggling culinary expanseWine Days celebrated at Sofitel Wanda BeijingDocumentary traces apples origin to ChinaChina OKs puffer fish encore on restaurant tablesFoods offer last kisses of summerMichelin eatery shut over licenseEat BeatWhere baby bites and tiny tots rule the roostBest Bites of Beijing (Sept 23-29)Mellow yellowAcclaimed chefs to set up pop-up restaurantTop 10 overseas destinations to travel in OctoberScenery of Maor Mountain National Forest Park in NE ChinaGlimpses of Lhasas holiday seasonTop 10 destinations for female travelersTop 10 seldom-seen views around the worldQuanzhou charmsYunnan, a travel heavenCity of SpringsMorning sun showers snow-covered Great WallMixing old with new in central Vietnam2013 Top 10 Tourism DestinationsEditors PicksAngelina Jolie files for divorce from Brad PittChinas Liu Wen eighth highest-paid model in the worldItems helping Chinese students learnNew home for the holidays in HangzhouHot wordsJia ZhangkeHan HanGossipTiny TimesOscars red carpet ReganmianNanluoguxiangTeaShirley TempleLeonardo DiCaprioVideoHighlights from Encore DunhuangTrailer of The CrewTrailer of Star Trek BeyondColumnsRaymond Zhou:X-RayPauline D Loh:
Chinese WhispersHot PotEco ChinaChina DreamChina FaceMost Popular48 hrsThis WeekPhotoYuncheng Salt Lake:Dead Sea of ChinaAngelababy poses photos at Summer PalaceTop 10 overseas destinations to travel in OctoberLeiyin Monastery: A Buddhist culture palace in DunhuangMilan Fashion Week: Dolce & Gabbana Spring/Summer 2017SpecialSpecial report: Rise and rise of Chinas outbound tourismYearender: Major events in showbiz in 2014…| About China Daily | Advertise on Site | Contact Us | Job Offer | Expat Employment |Copyright 1995 -var oTime = new Date();
document.write(oTime.getFullYear());. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.License for publishing multimedia online 0108263             Registration Number: 130349