Rus News Journal

Poor glamour

Company RGI has constructed design shopping centre Tsvetnoy in the centre of Moscow and has managed to transform it into a cult place for hipsterov. A glamour it has turned out much, here it only yields continuous losses.

Tsvetnoy it is a little similar to classical Russian shopping centres: it in two - three times is less, than " Mega " or " the Metropolis ". A building narrow enough, but high five floors. Inside instead of separate shops uniform trading space where the goods of different stamps are presented. In each hall the general fitting rooms and cash desks.

the building constructed by known architect Yury Grigoryan, already has collected set of awards. Tsvetnoy by results of competition EuroShop Retail Design Awards has been recognised the best among the European design shopping centres, and magazine Vogue named it " the Best shop of 2011 ". Awards, certainly, amuse vanity of owners of developer company RGI. And here the financial reporting will call tears more likely. Tsvetnoy, opened in December 2010 - go, till now did not become profitable: last year its monthly losses exceeded $1 million In hope to beat off investments the developer has gone on risky experiment.

Namolennoe a place
In a XIX-th century in Color parkway settled down the flower market, in the Soviet years the grocery. In 2007 sites known developer Boris Kuzinets who has built up Ostozhenka with elite habitation here began to buy up. In 2006 its company RGI has sold 27 % of actions on platform AIM of the London stock exchange for $192 million On earth Kuzinets buying up has spent about $100 million and expected to transform parkway in same " gold mile " as Ostozhenka.

after crisis of Kuzinets has reconsidered plans about habitation building, but has left the project megamolla. " Color same namolennoe for trade a place " general director RGI Andrey Nesterenko speaks. The Moscow authorities have promised RGI to allocate a platform where it would be possible to construct the second " European " or " Atrium ". Later plans of officials have changed, and RGI remained at the of 0,4 hectares. Here it was possible to erect high, to five - six floors, but a narrow building, absolutely improper for megamolla.

As the Savings Bank has already allocated RGI the credit of $150 million for building TTS, Kuzinets did not begin to refuse the project. However, a little it has changed. The developer has decided to make not usual shopping centre with cutting on separate shops, and department store (department store) like British Selfridges where all tenants work in one space, less areas leaves on corridors, show-windows and so forth So, from 38 thousand in sq. m of total area Tsvetnoy under trade is now taken away 15 thousand in sq. m, at a traditional format it would turn out 10 thousand in sq. m.

Complexity that in department store there are no tenants in habitual understanding: ritejlery, as a rule, do not pay for rent, and list to the owner of a building percent from a turn. Thus the owner himself employs and contains cashiers, protection and all personnel (except sellers). " If you have constructed usual shopping centre and have leased it at once you get profit. Risk only that you will not find tenants, explains Nesterenko. In department store all monetary streams go through the owner of real estate. It in addition bears risks ritejlera ".

Kuzinets to bear double risks did not want. " RGI the developer, we build, instead of we trade in clothes " explains Nesterenko. RGI planned to hand over a building bodily or, at the worst, to give the project to somebody to management. Kuzinets met practically all large ritejlerami French Galeries Lafayette, British Selfridges, Finnish Sokos. But to agree and it was not possible. Among the Russian players in department stores are engaged only Mercury (Central Department Store) and Bosco di Ciliegi (" Spring ") But they prefer to work on own areas.

meanwhile RGI has spent on Tsvetnoy more than $200 million, and to reconstruct something was already late. " My experts counted variants to make of a building usual shopping centre, offices, hostel, but only the department store extends economy Tsvetnoy taking into account the suffered and current expenses " minority shareholder RGI Peter Shura remembers.

it was necessary to the developer to leave on another`s glade and most to become ritejlerom.

Disputes on tastes
For work in Tsvetnoy Boris Kuzinets has collected the impressive command. CEO TTS there was Joram Evan (it supervised the finance in RGI). Kerolajn Grir working in London department store Liberty, have invited to be engaged in purchases and assortment, and the main thing bajerom and merchendajzerom have appointed Mahipata Singh. As advisers of the project chief executive Tsvetnoy and the spouse benefitsiara RGI Elena Kuzinets has involved three British companies: studio HMKM, Lifschutz Davidson Sandilands and DPA.

However with filling of shelves there were complexities. Most marzhinalnyj a segment in department stores expensive bags, footwear and accessories, but Tsvetnoy could not involve popular luxury - brands as in Russia exclusive rights on them possess Mercury and other distributors. Besides, not all the companies were ready to work in a department store format, in the close neighbourhood with other brands. But it was possible to agree with suppliers Topshop, Mango, Promod and Lacoste. But even those who was ready to cooperation, not always understood a format essence. For example, the cosmetic operator should become " L`Etual ". " Their managers have brought the floor plan, and there wood of partitions " Elena Kuzinets remembers. It contradicted the idea of department store where there are no superfluous walls. Have agreed with " Riv Goshas ".

Englishmen have decided to position shopping centre for a top of middle class and the advanced youth (the average check about 8 thousand rbl.). The rate have made on the fashionable western stamps which yet have been not presented to Russia (IRO, Reiss, All Saints, Maje, Zadig and Voltaire, etc.) . About 10 % of assortment Tsvetnoy imports independently. For example, last spring Tsvetnoy has delivered many collections of black colour, and it was found out that in a warm season Russians prefer brighter colours. Elena Kuzinets complains about absence of experience: employees yet do not have statistics on preferences of buyers. " professional ritejler will always sell better, than we. It is the law, she speaks. but at the initial stage it was important to us to generate image Tsvetnoy, to entice here imidzhevye brands ".

On a ground floor large shopping centres usually place a supermarket, and on top both #150; a cinema and park of entertainments for children. Tsvetnoy the areas for such tenants did not suffice. The exit has found holding Ginza Project it has received two top floors of department store in management. Also has made a tiny hybrid of the Dorogomilovsky market and " taste Alphabets " named " the Farmer a market ". Certainly, among suppliers Ginza not so it is a lot of real farmers, and " a market " works as usual shop of fresh vegetables and fruit, but the market surroundings and open regiments involve buyers.

have no hundred friends
" Remember a cafe in a serial " Friends " where heroes communicated all time? " Andrey Nesterenko asks. As he said, the good department store turns sooner or later in such destination point (destination. Council of Federation ) where people come " not simply shopingovat, but also potusit ". And not only during week-end. " All is constructed on pulse purchases: the girl to tea with girlfriends has come to drink, has bought fruit and a short skirt " Nesterenko argues.

to entice party-goers, Tsvetnoy has developed unprecedented for Moscow TTS event - activity: actions pass here two - three times a month. In April, 2012, for example, there were days of the British culture, in May an exhibition of porcelain, once a year it is possible to observe release of magazine Grazia both #150; journalists and photographers work in glass atriume on the ground floor. Each action manages RGI in the sum from $10 thousand to $150 thousand " We need to generate at middle class a habit here to go " Elena Kuzinets speaks. It seems that Tsvetnoy already became a cult place among Moscow hipsterov. " take place we in any " European " the audience would not understand us, and in Tsvetnoy " correct " atmosphere " the general director of company TrendsBrands Nastja Sartan which advances clothes of young designers tells. However, 80 % of sales TrendsBrands are brought by the Internet - shop, and the kornery in department store the company uses more likely as show - rum. The director of department of analytics Esper Group Darya Jadernaja confirms that some ritejlery are ready to work in a zero if only to have a point in a cult place.

as a whole project Tsvetnoy has appeared same glamour, but non-profitable. In 2011 Peter Shura has accused Boris Kuzintsa of inefficient management. " if to divide expenses for the leased area the square metre of department store has managed to shareholders RGI in mad $19 thousand " tells Shura. He suggested to exchange the package of 22,26 % RGI for project Tsvetnoy, but negotiations were at a deadlock. Minoritary has only achieved change of the general director: in February of this year RGI Andrey Nesterenko has headed.

" If in RGI took from visitors money for an input, as in a museum, probably, the model would work " Peter Shura jokes. In Tsvetnoy for uik - end comes 11 - 12 thousand persons, but they buy a little. For last year the department store has brought $14,3 million losses.

Andrey Nesterenko hopes that the project leaves in plus by the end of this year though usually western department stores leave on breakeven point for three years. A question in, a leah will manage to make the company so that for dandies and hipsterami not so advanced buyers were tightened. Otherwise it is necessary to take valid money for an input.