The Modny Kontinent group has begun to reduce the number of Incity stores under its control, Kommersant writes, citing its sources.
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Incity failed to benefit from the departure of foreign players in the context of a lack of funds for development. New tenants are being sought for the premises occupied by Incity stores, two real estate consultants said. The chain is shrinking, closing unprofitable properties, one of them suggests.
An employee of one of the Incity stores said that the closures affected mainly the regions and the Moscow region. In the brand's Telegram channel, a representative of the chain reported at the end of July about the closure of "some stores", in particular the last Incity in Novosibirsk.
The main contenders for Incity space on the fashion market are the brands of the Sportmaster group. The Ostin chain, which is part of it, announced the launch of youth clothing stores Face Code this year, and Zolla – Nice & Easy.
However, another source on the fashion market indicates that there is no talk of closing the entire Incity business. "Fashion Continent" has been experiencing difficulties since the early 2010s. Now the group's business is shrinking.
Incity is an inexpensive brand of women's clothing and accessories. The brand is developed by JSC Modny Kontinent, founded in 2003, whose portfolio also includes the Deseo lingerie brand. The family of the former governor of the Tula region, Vladimir Gruzdev, previously participated in the business. The current beneficiaries are not disclosed. Modny Kontinent's revenue in 2023 amounted to almost RUB 3 billion, decreasing by 12.6% year-on-year, according to SPARK-Interfax. The company's net loss amounted to RUB 262.3 million, while in 2022, profit reached RUB 90.9 million. There are 116 stores in Russia and one in Yerevan under the Incity and Deseo brands, the website says. In 2015, the chain had 450 stores.
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