The Spanish retailer Inditex, known for brands such as Zara, Massimo Dutti, Bershka, Stradivarius, and Pull&Bear, has officially ceased cooperation with the “MOCT-City” and “Karavan” shopping and entertainment centers in Dnipro. According to the decisions made, the company has terminated lease agreements, and new brands have already begun to occupy the vacated spaces.
This is reported by Finway
Demographic Situation in Dnipro and Market Resilience
Despite significant changes in the city’s demographics, where approximately 35% of the population consists of temporarily displaced persons, the “MOCT-City” shopping and entertainment complex is showing a recovery in visitor numbers and turnover to levels observed before the onset of the full-scale war. The shopping center maintains a high level of customer engagement and confirms its competitiveness in the market.
Why Inditex is Halting Operations in Eastern Ukrainian Cities
Key factors influencing Inditex’s decision to leave Dnipro and not resume operations in Kharkiv and Odesa include security concerns and the need for substantial investments in modernizing facilities. Specifically, these cities are viewed as high-risk zones due to their proximity to the front, complicating safe business operations. Additionally, the leased spaces would require significant investments to meet the modern standards of the brand.
- City Safety: Dnipro, Odesa, and Kharkiv are considered high-risk due to the military situation.
- Store Format: The old premises do not meet new requirements, making their modernization economically unfeasible.
“Despite demographic changes (35% of Dnipro’s population are temporarily displaced persons), visitor numbers and turnover at ‘MOCT-City’ have returned to pre-war levels. This shopping center maintains a high level of customer engagement and demonstrates resilience in the market.”
At the same time, Inditex is focusing its presence in Kyiv and western Ukrainian cities, which remain a priority for the company due to the relatively stable situation and higher investment attractiveness. New stores for Arber, Calvin Klein, MD-Fashion have already opened in the spaces vacated by Inditex in Dnipro, with LC Waikiki, Cropp, and House preparing to open as well. Currently, only the former Massimo Dutti space of 500 square meters is still awaiting a final decision regarding a new tenant.
It is also worth noting that a significant deal is expected in the capital’s commercial real estate market: entrepreneur Harik Korogodskiy has announced plans to sell the Dream Town shopping and entertainment center in Kyiv. This transaction could become one of the largest in recent years.