Russian luxury shopping center cancels rental payments of tenants during Covid-19

It’s no mystery that the outbreak of the coronavirus pandemic has taken its toll on the fashion industry. Countless fashion events were postponed or cancelled, while retailers saw their sales revenue drop as they closed shop.

Russia is no exception. The country has seen 209,688 confirmed cases, making it the fifth most affected country in the world. Moscow has extended its lockdown measures until May 31 and wearing face masks will be required by all residents in public places and transportation. These measures have hit small businesses the hardest, as work became scarce and they struggled to pay their employees.

Moscow-based luxury shopping center Vremena Goda Galleries has found a way to secure its tenants during these unprecedented times. Instead of continuing to charge rent, it has decided to cancel the rental payments of its leesees in April and May, as long as governmental restrictions are still in place.

Vremena Goda Galleries, which is located on Kutuzovsky Avenue, opened its doors in 2007. It now houses more than 150 fashion brands across 6 floors and 32,000 square meters. Among its tenants are Chanel, Burberry, Breguet, Cartier, Valentino and Stella McCartney, as well as a beauty salon, cinema, international restaurants and the largest grocery store in Moscow.

To provide further relief, the shopping center has recently announced its partnership with Globus Gourmet to donate food to those whose financial situation has become critical. More than 1,000 packages will be given to projects assisting the elderly and people with disabilities.

FashionUnited spoke with Lilit Adibekyan, CEO of Vremena Goda Galleries, about how lockdown measures are affecting the luxury shopping center.

What is the reality of the lockdown situation at Vremena Goda Galleries?

The shopping center is in restricted mode, which is sad to see. People can still visit the Globus Gourmet grocery store, AVE pharmacy and Vision optics, while the Spettacolo and Asia Hall restaurants are open for delivery. We saw these measures and restrictions impacting our customer traffic and now we are only getting about 800 visitors a day.

How is Vremena Goda Galleries handling its rental agreements?

Since we value our tenants, we are doing our best to reach a compromise with each brand and boutique. Currently, it is particularly important to maintain business ethics, professionalism and humanity. In order to support tenants, we have made the decision to cancel rental payments for April and May if current restrictions remain.