Page 133 - bneIntelliNews monthly country report Russia May 2024

of a more rapid recovery in LfL trends, talent shortages in the market will continue to put pressure on the company's margins, which could lead to lower medium-term market expectations. We maintain a neutral view on the company's shares.
Hugo Boss to sell its Russian subsidiary. Along with many other Western companies, Hugo Boss suspended its retail operations in Russia after the beginning of the full-scale invasion of Ukraine in February 2022.
The online marketplace Megamarket, owned by Sber, has agreed to lease 14 former Russian IKEA stores purchased from the Swedes by Gazprombank. This is the largest and one of the most mysterious transactions in the Russian real estate market: the Sbera marketplace is taking 400 thousand meters of the best retail real estate in Russia to make warehouses in its place. We tried to find an explanation for this event.
A subsidiary of the French Auchan retailer Sitras has sold its shopping centres in Russia, RBC business portal reports citing the changing entries in the state enterprise registrar.
As followed by bne IntelliNews, Auchan is one of the largest Western companies that kept its business in Russia after the full-scale military invasion of Ukraine.
Leroy Merlin DIY retailer and Auchan, both part of Mulliez Group, continued normal operations in the country despite earlier claims that the former plans to exit the market through a management buyout (MBO).
Auchan came under fire for maintaining its Russian presence, and even allegedly for supplying Russian troops, but reportedly did not have any plans to change its strategy and pull out of the country.
The reported ownership change deal remains obscure. The buyer of Auchan’s assets, Trade Galleries, is owned by a 23-year old lawyer from Kazan Tagir Shaimardanov through Kama Capital and Kama Capital Management Company. The final buyer of the Auchan stores, as well as the price of the deal, are unknown.
Auchan, controlled by the Mulliez family, has over 150,000 square metres of retail space in its Russian portfolio, manages 40 shopping centres and galleries, including the Aquarelle shopping malls in Pushkin, Togliatti, Volgograd and Troika in Moscow.
Consultants who worked with these facilities also told Vedomosti daily that Sitras also owns the checkout areas in Auchan hypermarkets.
In December 2023, Izvestia claimed, citing a letter from Deputy Prime Minister
133 RUSSIA Country Report May 2024 www.intellinews.com