Debenhams to re-enter Russian market

British department store Debenhams is set to open its first store in Russia in September, after the company exited the country in 2007, in an attempt to tap into Russia’s fast-growing retail marketplace. The UK firm, which is Britain’s number

two department store group by sales, plans to open a 35,000 sq ft store at the Mega Belaya Dacha shopping centre, owned by furniture giant Ikea’s Russian shopping centres arm, with franchise partner Debruss.

Debenhams International’s senior business manager, Lucy Haine, said: “Russia is a key market. The sales densities per square foot are significantly higher than Europe.”

Debenhams currently trades from 167 stores in Britain, Ireland and Denmark, and has 61 franchise stores in 24 countries. In October, it said it planned to double the number of franchise stores in distant and emerging markets over the next five years, and hopes to open at least seven stores in Russia.

International retailers have been trying to establish themselves in Russia lately to take advantage of the countries rising consumer spending, as according to data consultancy Euromonitor, Russia is Europe’s second biggest retail market with sales in 2011 of £400 billion, and is on target to become Europe’s biggest retail market by 2013/14.