What if Western companies leave Russia? There are the Turks

Sanctions imposed on Russia after its invasion of Ukraine have mobilized Russian retailers trying to make up for some of the growing losses.

The first contacts came after the Russian Council of Shopping Centers (RCSC), an organization representing shopping center owners and retail chain managers, announced that they would fill the gap left by Western companies leaving China with companies from countries such as China. Turkey, India and Iran.

“Groups of investors are calling and asking to meet with us about the empty stores following the withdrawal of Western brands from Russia,” Sinan Ongel, president of the United Brands Federation (BMD), told the Hürriyet newspaper. “We also plan to go to Russia in the coming days and clarify the details of the process,” he added.

According to BMD, 32 Turkish companies are currently operating in Russia and the brands have a total of 655 stores and 2,500 points of sale. “The experience that the Turkish business world has gained so far in Russia is very important,” he said.

“There is still a lot of serious spending going on in the country. Many western companies have stopped operating, but the stores are actually full. We do not know under what conditions they will accept Turkish marks instead of these stores. Previously, Turkish marks had been abandoned. “Russia because of the high cost. I believe the new conditions will be more favorable than the previous conditions,” he added.

The Indians are also in the game

Some Indian companies are also in talks to open stores in Russia. Home furniture retailer Maspar and Killer Jeans are among the retailers exploring franchise opportunities in Russia.

So far, four Indian brands have signed initial deals with Russian companies and another six are expected to arrive later this week, said Susil Durgakwal, founder of Beyond Squarefeet Advisory, a retail consulting firm that facilitates talks with Russian companies.

Dozens of major brands, including MasterCard, Visa, Sephora, Louis Vuitton, Nivea, McDonald’s, IKEA, Volkswagen, Google and Amazon, have temporarily suspended their operations or left the country since Russia sent in tens of thousands of troops to invade. in Ukraine on 24 February. According to research by the Yale School of Management, at least 253 brands operating in Russia until the start of the war have decided to leave the country altogether. The same survey states that 323 brands announced that they have suspended their activities, while the number of companies in the country that announced that they will not make new investments is 96, although 162 brands, on the other hand, continue their activities uninterrupted.

Petros Kranias