Consumer reset: Detsky Mir massively renegotiates rental conditions in large shopping malls

The leader in the children's retail market is seeking rental discounts in an attempt to compensate for the sharp deterioration in financial results. In 2025, Detsky Mir received a net loss of 7.8 billion rubles against a profit of 57.2 billion rubles a year earlier. For about a year, the company has been negotiating with shopping malls to reduce rates and, depending on the effectiveness of the store, asks for discounts of 10-50%, Izvestia learned. In the context of a decrease in consumer activity and a redistribution of demand for marketplaces, the brand is actually reviewing the economics of its network of more than 1.5 thousand stores. Experts note that rent payments remain one of the key items of expenditure for retail companies. At the same time, the situation is not unique: cost optimization is carried out by many market participants. How retailers adapt to the new economic realities is described in the Izvestia article.

Why does a retailer negotiate a discount on rent

Detsky Mir is sending letters to landlords asking them to review the terms of lease agreements, a consultant in the commercial real estate market working with the company and an interlocutor in a network of large shopping malls told Izvestia. According to them, such requests have been received for about a year, and the amount of the requested discount, depending on the performance of a particular store, is 10-50%. The consultant noted that the company applies an individual approach to each facility. In some cases, landlords are forced to make concessions and break payments, and some shopping malls terminate the contract and close brand outlets, a source in a network of large shopping malls added. He did not specify the number of stores that had already stopped working.

Photo: IZVESTIA/Sergey Lantyukhov

The Detsky Mir chain has about 1.5 thousand stores across the country, so renegotiating the lease terms is standard practice, its representative told Izvestia. He also did not disclose the dynamics of open and closed points. According to him, decisions on the revision of rates are made taking into account the traffic and transport accessibility of the shopping center, market rates and other "efficiency factors." Although about a third of sales are online, customers pick up almost 90% of online orders themselves at physical locations, he said.

Renegotiating the lease terms has become a way for Detsky Mir to reduce costs amid pressure on consumer demand and increasing competition with marketplaces, experts say. The company holds a strong position in negotiations with the owners of the shopping center, as there are significantly fewer specialized competitors in the segment, said Tatiana Yudina, Senior Consultant at CMWP Retail Real Estate Department. According to her, the retailer is seeking to reduce not only the fixed part of the lease, but also the percentage of turnover. This happens, among other things, under existing contracts and after the exclusion of online sales from the calculation base, the expert clarified.

Photo: IZVESTIA/Dmitry Korotaev

According to CMWP data, Detka, Daughters & Sons, Korablik and Olant, as well as international brands Next Kids, C&A, Mothercare, Imaginarium and Hamleys, have withdrawn or reduced their physical presence from the market in recent years. Therefore, for the owners of the shopping center, closing the Detsky Mir store may be less profitable than giving it a discount, Tatiana Yudina believes. According to her, it is difficult to find a tenant who can occupy a comparable area and maintain a wide range of products.

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How marketplaces affect the situation

The chain, like other retailers, is under pressure from online commerce, says Olga Sumishevskaya, a partner at One Story consulting company. In January — June, the number of purchases of children's goods decreased by 3% year-on-year, while in the online segment they increased by 8%, the OFD Platform company estimated. At the same time, the median price increased by 9% over the same period, to 4,030 rubles.

In conditions of an overflow of consumers, the maintenance of such a large number of outlets becomes unprofitable, explains Olga Sumishevskaya. According to her, physical retail, against the background of increased competition with marketplaces, is now not even able to maintain an acceptable level of assortment. According to Focus Technologies, in the first half of 2026, the average attendance at children's goods stores was 4% lower than the same period last year.

Photo: IZVESTIA/Pavel Volkov

A reduction in the number of potential buyers is also becoming one of the factors, said Evgenia Khakberdieva, Regional director of the Retail Real Estate department at NF GROUP. According to her, the drop in demand in this segment in recent years has been caused by a decrease in the birth rate. She estimates the share of rent in the cost structure of the chain's stores from 6% to 12%, depending on the turnover of a particular point and its location. The need to review contracts may be related to an increase in other expenses and a decrease in business margins, Evgenia Khakberdieva believes. For retail companies, rent, along with the payroll, remains a key expense item, Olga Sumishevskaya agrees.

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Work on improving efficiency is underway today in all segments of trade, recalled the Chairman of the Association of Retail Companies (ACORT) Stanislav Bogdanov. According to him, the stage of rapid expansion is being replaced by work with costs, logistics and service. For example, Vkusville closed 286 stores in 2025, Latoile plans to reduce to 150 outlets in 2026 after eliminating 93 a year earlier, Lime suspended the opening of new stores until 2027 and focused on the efficiency of the existing network. And Stockmann intends to close up to five of the 28 department stores in the next 12 months, almost a fifth of the network, explaining this, among other things, the high rental and logistical burden.

Photo: IZVESTIA/Anna Selina

At the same time, experts doubt the stabilization of the situation. Shopping centers charge not only for retail space, but also take a commission from the turnover of points, and they have been significantly decreasing for companies lately, Olga Sumishevskaya stated. According to a survey by NF GROUP, retailers of children's products are planning moderate openings this year — about 20 stores — simultaneously with the closure of inefficient outlets. Detsky Mir is going to increase its presence by opening new stores and pinpointing locations in favor of the most sought-after ones, his representative added.