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IKEA faces massive fines for terminating lease agreements with shopping centers

IKEA began to terminate lease agreements with shopping centers where the chain’s points of sale were located. For the early termination of contracts, the store can face serious fines. The information was confirmed by many large landlords. About it reported “Vedomosti” sources in the real estate market.

Since IKEA terminates contracts unilaterally before their expiration, impressive fines will await the company, experts interviewed by the newspaper are sure. Under such conditions in the retail real estate market, the landlord leaves a deposit (three to six monthly payments). This mechanism allows you to protect the owner of the area from downtime in the event of an unexpected departure of the tenant.

In some cases, if the tenant has been renting premises for several years, the so-called break option begins to operate. In this case, after three or five years of cooperation, the tenant can move out without penalty if he warns the owner of the space three months in advance. However, IKEA is unlikely to be affected by this rule: many outlets of the network (studios and small shops) have recently opened in shopping centers.

Three Moscow IKEA points were located in the Mega shopping center, which belong to the same company as the store itself. Seven more were located in large shopping centers of the capital. In one of them, information about the termination of contracts was confirmed, in the other, the final departure of IKEA is not yet known. Experts believe that the retailer may wind up points gradually or purposefully leave some stores.

The Mega shopping centers themselves will remain open, said the Ingka Group, which owns IKEA. The company declined to comment on the operation of the retailer’s outlets in the shopping center.

  • In total, 26 IKEA stores operate in 12 cities of Russia, including hypermarkets, studios and city format stores. All of them were closed on March 4 in connection with the start of Russia’s special operation in Ukraine.
  • 15 June IKEA reported on the reduction of business in Russia and the sale of four Russian factories. The company explained this decision by the difficulties in logistics and organization of work processes. Who will become the new owner of IKEA enterprises is not yet known. As for the goods left in warehouses, the retailer promised to organize an online sale. At first, access will be open to store employees, and then all other customers will be able to purchase goods. The exact start date for the sale is not yet known.

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