MOSCOW — Shoppers who find 250 stores aren’t enough can go ice skating, watch movies or even ride a carousel, all under a single roof.
While it sounds like the Mall of America, this mall is outside Moscow, not Minneapolis.
“I feel like I’m in Disneyland,” Vartyan E. Sarkisov, a shopper toting an Adidas bag, said recently while making the rounds of the Mega Belaya Dacha mall.
Instead of bread lines, Russia is known these days for malls. They are booming businesses, drawing investments from sovereign wealth funds and Wall Street banks, most recently Morgan Stanley, which paid $1.1 billion a year ago for a single mall in St. Petersburg.
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One mall, called Vegas, rose out of a cucumber field on the edge of Moscow and became, its owners say, larger than the Mall of America if the U.S. mall’s 7-acre amusement park is not counted as floor space.
A few offramps away on the Moscow beltway, another mall scored a victory by another measure: the Mega Tyoply Stan shopping center attracted 57 million visitors at its peak in 2007, well ahead of the 40 million annual visits reported by the Mall of America.
As U.S. malls dodder into old age, gaptoothed with vacancies, Russia’s shopping centers are blossoming into their boom years, nourished by oil exports that are lifting wages.
“It’s 1982 all over again in Russia,” said Lee Timmins, the country representative of Hines, a Texas-based real-estate group that is opening three outlet malls in Russia, referring to the heyday of the U.S. mall experience. Russians, he said, love malls.
The mall boom illustrates an extraordinarily important theme in Russian economics these days.
The growing crowds at malls, and the keen interest in Russian malls on the part of Wall Street banks, are signs the emerging middle class that protested in Moscow’s streets against Vladimir Putin last winter is becoming a force in business as well as politics.
Investors, who with money at stake are a bellwether of the new trends, are not waiting for the next round of protests; they are placing bets on the rise of a broad affluent class in Russia.
“Over the past 10 years, Russia has turned into a middle-class country,” said Charles Slater, a retail analyst at Cushman & Wakefield, a commercial real-estate consulting firm. “What better to do than go to an enclosed, warm environment with many things on offer, whether that be bowling, cinema or food courts, things the customers have not been used to in the past?”
Moscow now has 82 malls, including two of the largest in Europe, according to the International Council of Shopping Centers, a New York-based trade association. Both are owned by Ikea Shopping Centers Russia, the branch of the Swedish assemble-it-yourself furniture franchise that manages 14 malls here.
Malls are still novel in Russia; the first Western-style suburban mall opened in 2000. They are now changing hands as developers sell to institutional investors, like Morgan Stanley, shedding light for the first time on their eye-popping values.
At the core of the attraction for investors is the rising disposable incomes of Russians, nudged along by policies favoring the middle class, lest their challenge to Putin’s rule intensify.
Russia has a flat 13 percent income-tax rate. Most Russians own their homes, a legacy of post-Soviet privatizations, and so pay no mortgage or rent. Health care is socialized.
Not surprisingly, then, Russians have become fanatical shoppers. Russians spend 60 percent of their pretax income on retail purchases, a category that includes food, according to Jones Lang LaSalle, a real-estate consulting firm.
The country in second place in Europe is Sweden, where retailing accounts for 40 percent of total private spending. Germans, by comparison, spend 28 percent of their salaries shopping, according to Jones Lang LaSalle.
A megamall built for Russians, not surprisingly, is subtly distinct from the idealized urban environment preferred by Americans, a result of careful analysis of consumer behavior and Russian retailing desires.
Most Russian malls have a huge grocery store as an anchor tenant, rather than a department store. Russians are still struggling to find groceries in their neighborhoods.
And the sight of row upon row of groceries, stacked to the ceiling, surely soothes a lingering sore spot in the soul of Russian women who were compelled, just two decades ago, to serve their children such items as canned seaweed and powdered milk.
Moscow, the new capital of malls, has more floor space in malls than any other European city, with 34 million square feet.
And as if to drive home the point that the Russian capital has long since moved on from the deprivation and hardship its name still evokes, it has shattered other shopping-center records.
Belaya Dacha was one of the largest malls in Russia from 2007 until 2010, when it was overtaken by Vegas. The interior space of Vegas is 4.15 million square feet, larger than the Mall of America excluding the Nickelodeon Universe amusement park.
“This is a big world with a lot of people in it,” Dan Jasper, the spokesman for Mall of America, said. “I think it’s great they are building these things in Russia, too.”
And a new record-setter is going up. Avia Park in northwest Moscow will have 5 million square feet of interior space including covered parking, which will make it the largest mall in the world outside Asia.
So, the market is buzzing. Morgan Stanley is in talks to buy another mall, the Metropolis in Moscow, for more than $1.2 billion, according to real-estate professionals close to the negotiations who spoke on the condition of anonymity. The seller is Capital Partners, a Kazakh developer that opened the mall in 2009.