Eldorado, the Russian household appliances and electronics chain, intends to open 50 new stores in 2016. At the beginning of July 2015, the retailer managed 384 hypermarkets, 20 of which were opened in 2015. The cost of opening a new facility can be RUB 20-30m. Eldorado’s shareholder PPF has allocated RUB 7.3bn for the group’s expansion. Denis Kolokol’nikov at RRG, however, warns that Eldorado’s product range are non-essentials, making the company vulnerable to any economic downturn or crisis. RRG specializes in leasing and managing commercial real estate. Kolokol’nikova says there are currently a wide range of retailers looking to expand within Russia, including clothing brands like Forever 21, H&M, Monki, Uniqlo and chains such as Ikea, Leroy Merlin, Hoff and Decathlon.
