The Spanish group Inditex started opening stores in Ukraine on April 3. As of April 11, 28 stores of all seven brands: Zara, Bershka, Pull & Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home were opened in 6 shopping centers in Kyiv. On April 11, Forbes writes about how rent prices in SECs can change. According to Evgenia Loktionova, director of the Ukrainian trade guild, the return of Inditex brands to Ukraine – Zara, Bershka, Stradivarius and others – will lead to an increase in rental rates in shopping centers. Growth will be 10-15%.

“In January 2024, fixed rental rates in shopping centers of Ukraine were up to $18 per 1 sq.m per month for clothing stores with an area of 600-1500 sq. m. Rates for fashion stores with an area of 100-200 sq. m – up to $30 per 1 sq.m per month. These are payments for tenants without taking into account a percentage of turnover, VAT and operating payments,” says the study of the “Ukrainian Trade Guild”.

On April 11, Zara resumed work in Lviv. In particular, Zara, Massimo Dutti, Oysho and Pull&Bear brand stores, King Cross Leopolis Zara and Pull&Bear shopping centers have resumed operations in the Forum Lviv SEC. Next, stores are expected to open in Cherkasy, Vinnytsia, and the central regions of Ukraine.

Director of UTG Evgenia Loktionova noted that the return of Inditex has two positive aspects for the Ukrainian market: a decrease in SEC vacancy and the return of anchor tenants.

However, this grand return has another side of the coin, which Ukrainian brands are worried about. Last year, domestic players of the fashion market recognized that it is difficult to compete with Inditex and H&M, because these companies have large-scale and aggressive marketing and incomparable advertising budgets. Evgenia Loktionova believes that the resumption of Inditex’s work may have a negative impact on Ukrainian brands, but the main issue of competition is in price policy. “Our Ukrainian brands are unreasonably expensive when compared with international ones, in particular, with Zara’s pricing policy,” she says.

According to the head of the URTC, the return of Inditex may also affect Turkish and Polish brands, in particular LC Waikiki and brands of the LPP company. However, the Polish LPP has its advantage – a more extensive network that works in more cities of Ukraine.