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In 2017, Moscow and St. Petersburg will receive 35%40% more tourists than in the past. The expected growth is already forcing up to 20% of retailers to reorient themselves to this segment. "Shops"for tourists" are taking to the streets not only with souvenirs, but also with clothes, shoes and accessories. However, despite the fact that for the first time in twenty-six years, travel companies have launched shop tours to Russia, the trend, according to experts, remains underestimated.

 

Russia is becoming one of the leading destinations for inbound and domestic tourism: according to the World Tourism Organization, by the end of 2016, the country came in ninth place in the ranking of the most popular places to travel. According to the federal target program for tourism development, Russia should enter the top three leaders in the world market by 2018.

 

According to estimates by Cushman & Wakefield, in 2016 Moscow received 17.5 million visitors, including Russians from other cities; St. Petersburg received 6.9 million people, which is more than the number of residents permanently residing there (according to official data). At the same time, the main tourist flow still falls in the summer months, but for certain categories of tourists (for example, Chinese), a significant increase was observed even in winter: the number of tourists from China in Moscow in the 1st quarter of 2017 increased by 70% compared to the 1st quarter of 2016.

 

 

In St. Petersburg in January 2017, the tourist flow increased by 30%, although mostly due to Russian tourists. Tourists from China were also leading among foreign tourists, but their increase was less noticeable than in Moscow, about 40%. Passenger traffic at Pulkovo Airport in the 1st quarter of 2017 increased by 25% compared to the same period in 2016.

 

 

According to Knight Frank St Petersburg, St. Petersburg still tops the ranking of the most visited cities in Russia; in 2016, the city was recognized as the best tourist destination in Europe for the second time in a row, receiving the World Travel Awards. The Investment Committee of St. Petersburg has developed a development program until 2021, assuming that in the next five years the tourist flow will increase to 7.3 million people, and the average annual occupancy rate of hotels will increase from 61.5% to 63.5%. The program provides several forms of state support, including for retailers. "As a result, now in souvenir shops you can find clothes, shoes, hats, sometimes even outerwear," lists Alexander Oshurko, Managing Partner of Praedium. As for stores in shopping centers, branded stores with sportswear and paraphernalia (Olympic uniforms, etc.), as well as stores with Russian-made goods are designed for tourists.

 

 

As such, tourist shops in the center of Moscow have retained their format, but have expanded their assortment. For example, Natura Siberica «went to the center» – opened a brand boutique on Tverskaya. The Russian Army store chain is also designed for tourists, but recently things have not been going well for them. As for the trends in tourism retail, in general, there is a very noticeable increase in the number of goods with patriotic symbols and the replacement of traditional souvenirs with new formats (clothing, shoes). In addition, retailers began to pay more attention to the works of independent designers and author's concepts.

 

Eh, roads

 

According to analysts of Colliers International, both Russian and foreign tourists have a "clear interest in"non-traditional"shopping". These are mainly fashion brands of the high price segment, perfumes and cosmetics, jewelry.

 

 

The increase in demand for luxury goods is largely due to the weakening of the national currency, which has made them more accessible to foreign tourists. In particular, DLT in St. Petersburg announced that in September 2016 – January 2017 sales increased by 62% compared to the same period last year, and tourist traffic in the department store increased by more than 40% during this period. The number of foreign tourists shopping in DLT has increased 4 times, however, more than 90% of them are still from China. In addition, the so-called "three zones of luxury" Bolshaya Konyushennaya Street, part of Staro-Nevsky Prospekt and Bolshoy Prospekt of the Petrogradskaya side are experiencing traditional interest from guests in St. Petersburg.

 

 

However, given that large-scale reconstruction of streets with the expansion of pedestrian zones continues in both Moscow and St. Petersburg, analysts' forecasts for retailers this summer are disappointing. "Reconstruction often makes cafes and shops on the repaired streets almost inaccessible," explains Anna Sibirkina, Program Manager China Friendly. In addition, the repair makes it difficult for tourist groups to travel along pre-agreed routes (most often at the beginning of the season) and causes a negative attitude towards the trip and the city itself.

 

To be continued.

 

Author:Ekaterina Reutskaya

Photo: Shutterstock.com