IKEA Goes to Ukraine from Moscow
“Ramstore retail chain has sealed an agreement with IKEA to become a major
operating company in Kyiv’s MEGA shopping mall. The project proves that the
Ukrainian capital is an undisputed leader on the volume of Russian retail
investment among the CIS cities (excluding Moscow). However, experts predict a
forthcoming sharp decline in the attractiveness of Ukrainian projects
Ramstore’s Ukrainian expansion will copy the retailer’s triumphal entry
of the Moscow market in 1997. Ramstore in Kyiv will also be the biggest food
store in the country with the total area of 12,000 sq. km.
Ukrainian
projects are now highly popular with Russian businessmen, as nearly all top
Moscow retailers have their shops in Ukraine. Russian retailers do not pay that
much attention to any other Russian regions, except for Moscow. The volume of
the retail market is estimated to have risen 28 percent. The city is relatively
close to Moscow – 800 km, compared to several thousand kilometers to Russian
million-populated cities. What is more, many retailers view Ukrainians as weak
rivals.”
Kommersant
