Business in Russian luxury brand stores is sluggish, and there are even more store employees than customers.
The financial crisis caused a large number of luxury brands to leave Moscow. Even before 2008, these brands were still opening flagship stores in Moscow one after another.
Stella McCartney recently closed its Moscow branch, followed closely by other first-tier design brands such as Lavin and Alexander McQueen. Several stores that were once stocked with trendy Western fur bags that Russians snapped up are now empty.
Just six months ago wealthy Muscovites were spending their oil wealth at the GUM luxury department store in Red Square, but as oil prices fell, their bank balances plummeted. There were more shop assistants than customers at Red Square where luxury brand stores gathered last weekend.
Moscow’s notorious traffic has improved significantly, with apparently fewer luxury cars clogging the roads. Moscow political analyst Georgy Boft said: “It has become much easier to drive through the city. A journey that took an hour in 2008 now only takes 30 minutes.”
