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Mobile operators threaten to close salons and demand more than 50% rent reduction

Cellular operators in Russia are threatening to close their stores if malls don’t lower rents. According to Kommersant, we are talking about the requirement to reduce rent by more than 50%.

All retailers are demanding rent cuts, but operators are asking for larger discounts than others. Experts believe that the owners of the premises will not agree to this, as new applicants quickly appear on the square. In this situation, by the end of the year, operators will close 15% of 18,000 outlets.


The source writes that this week one of the landlords received a letter from MTS, in which, referring to the “reduction of customer traffic and turnover to 45-63%”, it was proposed to reduce the rent to 69.3 thousand rubles. per month (original price not specified). Otherwise, the MTS salon may be closed.

MegaFon Sales Director David Borzilov confirmed that the reduction in the flow of customers is typical for the entire market. Many landlords understand the situation and go forward: “In the second quarter of 2022, rates decreased, discounts amounted to 20%.” Tele2 also insists on reviewing rental rates: “They are too high and do not take into account new realities.”

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Vimpelcom and Svyaznoy confirmed that they are regularly negotiating with the owners of the premises to adjust the cost of rent.

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