News & Events in Belarus

Lukashenko suggests turning unfinished project in Minsk into mall for local business

In July 2022, Aleksandr Lukashenko visited the Stolitsa shopping center after it was rebranded to specialize in domestic brands. The president instructed the Minsk city authorities to turn one of Minsk’s unfinished construction projects into a mall operating on the same principle. In this episode, we will tell you how the unfinished Magnit Minsk became a showcase for Belarusian industry. How many people visit the First National Shopping Center every day? Why do foreign delegations love to visit it?

Idea to collect Belarusian manufacturers under one roof

The construction of a multifunctional complex in the north-east of the Belarusian capital began in 2010. Magnit Minsk was designed to include an apartment hotel with retail space and was expected to open ahead of the 2014 Ice Hockey World Championship. But the Iranian investor was never able to finish the project. Following an auction in December 2022, the project went to the Capital Construction Department of the Minsk City Executive Committee. It had a clear idea of what to do with it. Work on the concept of a national shopping center began immediately after the president's instruction, which he gave while visiting the Stolitsa shopping center a few months earlier.

“We got down to work together with the entire team of the Minsk City Executive Committee literally the following day after the visit. We developed the concept and schedule of work, and mapped out other necessary measures to turn this unfinished facility into a well-functioning place,” said Ivan Supranovich, Director General of Capital Trade and Servuces company.

The entire complex occupies more than 140,000m2. About52,000m2 was allocated for retail space. The First National Shopping Center was inaugurated on New Year's Eve - 29 December 2023. Aleksandr Lukashenko toured manufacturers’ stores. Many enterprises represented in the shopping center survived the difficult 1990s only thanks to the president. Today they are the industry captains. Manufacturers, in turn, emphasized their focus on domestic raw materials.

What’s on sale in the First National Shopping Center

There are more than 130 stores in the shopping center. You can buy literally everything: glassware, jewelry, furniture and even... a wooden house.

“For the convenience of visitors, we have a lot of navigation panels, both interactive and stationary. The division of the retail area is based on a geographical principle, with each zone representing one of six regions of the country. The middle and upper levels are reserved for six regions. The lower level features business entities of the city of Minsk. Within each retail zone, shops are grouped according to their own retail strategies,” Ivan Supranovich noted.

Why is the First National Shopping Center so popular?

The rent in this mall is slightly below-market; thus its retail premises are affordable. Due to a high competition among applicants, only the best of them got shopping floor at the mall.

“Due to a fairly high occupancy rate of retail premises in the country, small and medium-sized enterprises had certain difficulties entering the market. Therefore, the president gave an instruction to make sure every enterprise from any corner of our Motherland will be able to establish a presence in the city of Minsk. The retail space in the shopping center is affordable to every business. Thus, our rental strategy killed two birds with one stone: we made our mall competitive and fulfilled the president's instruction,” Ivan Supranovich noted.

It was sometimes difficult for manufacturers from the periphery to get their products on the shelves of hypermarkets or in the shop windows of malls in Minsk due to tough competition and high rental costs. In addition, if a product is in demand among locals, it simply might not reach the capital city as it sells out fast.

Shopping center visitor Galina shared her impressions of the mall: “I come here every now and then, because our Pervomaisky District administration has an office providing public services here. This is the main reason why I come here. Along the way I’m getting familiar with retail outlets located here. The are very convenient, nice, they offer a broad assortment of goods, tasty products. The mall is trying to improve the shopping experience of customers. 

Another visitor Tamara doubles down on that: “I like the idea behind such a shopping center. This is my second time here and I have seen a lot of interesting items already. Today I have come here to have a look at Mogilev-made curtains.”

This concept has worked. About 20,000 people on average visit the mall every day. It is really convenient! You no longer need to look for stores of your favorite brands and waste time traveling around the city.

“Demand for our products is great. We actually expected fewer customers. But we see a steady customer traffic throughout the week. Our outlets in other shopping centers are busy mostly on Friday, Saturday, and Sunday, but our store in this mall is never slow, a lot of people drop by almost every weekday. 07/06 The number of foreign customers here is bigger than in our other stores. It is difficult for foreigners to take a carpet home. Yet, they come here to learn more about our brand, to check the quality. And when they come back home, they search for these carpets in their countries,” said Director of the Vitebsk Carpets retail network Vitaly Lugin.

“The very idea is great. The project really took off: no one expected it would make such a splash. Foreign and local customers can see all goods that are produced in the Republic of Belarus in one place. This is no small feat. The revenue tells it all. Our daily revenue is growing. This is a high-traffic area. No wonder, as we offer fresh products at some of the lowest prices,” noted Deputy Director General for Commerce at Babushkina Krynka Sergei Yanchenko.

First National Shopping Center is an image-building project

The First National Shopping Center is not just another retail facility. This is a showcase of Belarus' industry. People come there to see or try the best of what is made in Belarus. It is important for a manufacturer to make a good impression. There may not be a second chance.

“We focus on sugar-free products. Healthy eating is a hot trend now. No one else makes sugar-free glazed curds and ice cream. Russians drop by. They see products they haven't seen before. Some of them reach out to our factory in order to purchase and sell these products in their country,” Sergei Yanchenko said.

“It is an honor for us to have an outlet in this shopping center. I believe that the center has Belarus’ best producers. Being one of the biggest carpet manufacturers in Belarus and the CIS, we view the center as an image-building project. Every Belarusian has a chance to see who we are and what we offer,” Vitaly Lugin emphasized.

Showcase of domestic industry for foreign guests

Foreign delegations take a keen interest in Belarusian market offerings. The First National Shopping Center has become a showcase of the Belarusian industry. For instance, the shopping center has recently hosted the Azerbaijani parliamentary delegation led by Speaker of the Milli Majlis of Azerbaijan Sahiba Gafarova.

“The first National Shopping Center is a source of pride for our country. It was a great pleasure indeed to host the honorable speaker. What did we talk about? We spoke about the need to expand operations and to increase our presence in the Azerbaijan market. Minsk has signed a twinning agreement with Baku this year. I believe that goods produced in the Republic of Belarus, in Minsk, should be widely available on the Azerbaijan market,” Minsk First Vice Mayor Nadezhda Lazarevich said.

“The mall sells products made by all branches of the country’s economy, with a focus on industrial goods. We discussed possible cooperation areas with Azerbaijan. Certain agreements have been reached. We introduced the Azerbaijani delegation to our projects, including the First National Shopping Center and Dadomu, Belkoopsoyuz fur coats, carpets and footwear,” Tatiana Lugina, Chairwoman of the Belarusian light industry concern Bellegprom, said.

What else does the First National Shopping Center offer?

The First National Shopping Center is not just a marketplace. It is a venue hosting concerts, awareness raising campaigns and workshops, which would surely be of great interest to children and adults alike.

“Events help increase foot traffic. We have plans to hold in-store events at least once a week to engage customers and generate footfall,” Ivan Supranovich, Director General of Capital Trade and Services company, said.

Aleksandr Lukashenko also commented on the ceiling decor. The president was told that it was not about design but a necessity. The building stood idle for many years, and it was still early to start painting it.

“I am not sure about the ceiling. I do not know if you are going to finish it or not. I believe it is absolutely unnecessary to spend money on some extravaganza. But all these open vents and holes look bad. If I were you, I would hide them. Because it looks as if you were in a hurry and did not finish something,” the head of stat said as he visited the First National Shopping Center in December 2023.

A cost-effective ceiling solution was found that will not drive rental prices up.Customers will be able to see the new décor in a few months.

What Russian cities will host Belarusian shopping malls?

Products labeled “Made in Belarus” are a sign of quality for Russians. The trade between the two countries keeps the momentum. During the visit to the First National Shopping Center, Aleksandr Lukashenko said that Belarusian goods should find way to Russia without mediators.

"Why can’t we build such a mall in St. Petersburg and sell our goods there? Why can’t we do it in Moscow, in Smolensk? In Bryansk or Pskov? These cities are not far away. We could sell our goods there. Russians are ready to cooperate. They offer land plots. Especially St. Petersburg. People are willing to meet us halfway. Take your goods and sell them there. Belarusian goods are in demand there. Let’s consider it. We sell our goods to middlemen and they sell them at double the price in Russia and then end up in jail here,” Aleksandr Lukashenko said during his visit to the First National Shopping Center in December 2023.

In March 2024, it was announced that Belarus is set to open a number of retail outlets in Russian cities. Pilot projects will be implemented in Kazan, Nizhny Novgorod and Ufa.