Turkish brands keen to move into Russian malls

The sanctions imposed on Russia after its attempted invasion of Ukraine have mobilized Russian retailers.

The first contacts started after the Russian Council of Shopping Centers (RCSC), an organization representing developers, shopping center owners and retail chain operators, announced that they would fill the gap created by Western companies that withdrew from Russia with brands from countries such as China, Turkey, India and Iran.

"Investor groups call and request to meet with us regarding the vacant stores after Western brands withdrew from Russia," said Sinan Öncel, chairman of the United Brands Association (BMD).

"We also plan to go to Russia in the coming days and detail the process," he added.

According to BMD data, 32 Turkish brands currently operate in Russia, and the brands have a total of 655 stores and 2,500 sales points.

The experience that the Turkish business world has gained so far in Russia is very important, Öncel noted.

"There is no risk for us to be in Russia right now; it is a market we are familiar with," he said.

"There is still a serious expenditure going on in the country. Many Western brands have ceased operations, but the stores are actually full. We do not know under what conditions they will accept Turkish brands instead of these stores. Previously, Turkish brands had left Russia due to high costs. I believe that the new conditions will be more favorable than the previous conditions," he added.

Some Indian retailers are also in talks to open shops in Russia.

Home furnishing retailer Maspar and fashion brand Killer Jeans are among the retailers exploring franchise opportunities in Russia.

So far, four Indian brands have signed initial agreements with Russian firms,...