ELISEEVSKY STORE IN MOSCOW IS ON THE VERGE OF CLOSURE

The Moscow market might face the closure of the legendary grocery store, which has recently celebrated its 120th anniversary. A few visitors to Eliseevsky describe empty counters, hinting at the shutdown of the business. At the same time, market experts are wondering who will get the trading floor if the current owners leave it. As for the owners themselves, they have not yet confirmed the information about the closure of Eliseevsky.  

Analysts have been discussing the possible closure of the department store since last year, as soon as the Scarlet Sails chain, which ran the legendary store on Tverskaya Street, was closed in Moscow. The owner of the chain, developer Maxim Blazhko, whose core business was the Don-Stroy company, put up trade pavilions for sale back in 2019.

Eight supermarkets and hypermarkets were closed, but business did not come to the closure of Eliseevsky - the store continued to work.

Eyewitnesses describe the soot-covered windows of Eliseevsky, which is especially striking against the backdrop of the clean boutiques of Tverskaya. The dim lighting in the store, barely allowing one to see the 50% discount on goods, instills pessimism in those who still remember the legend of Soviet trade, which amazes guests of the city with splendor and luxury.

Last year, the store's CEO Natalya Kharitonova tried to dispel rumors of liquidation. "The lease agreement with the Moscow Property Management Committee, which owns the historic building, continues to be in force, and the management company continues to work," said Kharitonova. The official founder of the store has recently been the Cypriot offshore Grestalen Services Ltd.

According to many experts, Eliseevsky requires investment for the subsequent change of the format, including public catering zones.

However, the transformation of the retail space into a stylish establishment with a kitchen and hoods will be difficult to implement, given the status of a historical and cultural monument.

Analysts confirm that due to the pandemic, many trading floors on Tverskaya Street have become empty. The share of vacancies that appeared due to the withdrawal of jewelers and fashion retailers from the market increased from 8% to 13%. At the same time, rental rates decreased.

It is possible that the owner of Eliseevsky is now trying to sell the lease right at a profit, getting rid of non-core assets. And while there are no official statements about the meager assortment, the market continues to be overgrown with rumors.