Retail explosion

Even though there is technically impacts from the global financial crisis here in Moscow, one could not tell this from the retail spending - which is absolutely manic. New futuristic malls sprout up like weeds across the city, and each one (we've only been to a few) attract hoards of shoppers. It's almost as if there is no saturation point, even though there are more than 15 extremely large shopping centers. Is there no limit? Build another one, and BAM - it's filled with tenants and shoppers from day 1 if not before (I heard one place had a pre-sale for VIP's the day before the mall actually opened).

New Muscovites have a voracious appetite for designer clothes, home goods, and electronics/gadgets after 8 consecutive years of positive economic growth from 2000-2008. Almost all transactions are done in cash, which is different from the growing use of credit and debit cards for almost all transactions in the US. Russian Rubles accepted only (some stores accept Euros but that it not common). Most Russians seem to not be worried about the current economic environment, with great confidence that it will turn around very shortly. American shoppers have been far more reserved with their spending over the past 18 months. I have to say one possible reason is the lack of compelling and innovative merchandise at the american stores, this might come as a surprise to many but there is really in my mind a clearly better selection of products being sold in Russia, although that comes with the caveat that most of these items are more expensive. I wondered for a while how it was that all of the Muscovites dress so remarkably well, but after seeing the extremely high quality of clothes in every store it really is no wonder. They get the very best of US merchandise along with the best of Europe and Asia - it's all available here.

Check out these photos of some example shopping centers - the first is the 7 story mall's at Kievskaya's blue escalator, the second is the terrific 3 story GUM shopping center with the gigantic barrel roof skylight, and the last photo is a sharp 21st century 4 story glass and steel center across the street from our apartment (which houses a mall, a grocery store, pharmacy, cell phone shop, dry cleaners, jeweler, florist, photo lab, and cafe all in one great space).