A Mall Story

It was never an easy run for Nikolsky Shopping and Entertainment Center. The mall opened during the latter stages of the pandemic, which was challenging enough, but little could prepare Kyiv-based mall developer and owner Budhouse Group for what was ahead. Less than a year after opening, Ukraine would be invaded by Russia and shortly after that, the Kharkiv shopping center would be extensively damaged by a missile.

Undaunted by the level of damage wreaked by the bombing or the ongoing threat of further missile attacks, the company was determined to restore the center as a symbol of hope and normality for the people in the eastern Ukrainian city of Kharkiv—and beyond.

“We had to go through challenges that none of us should have to go through,” Budhouse Group Chief Marketing Officer Dmytro Bushmakin said. “We opened at a very difficult time during the Covid pandemic. The world was in lockdown. Business was unstable. People were tired, but despite this, Nikolsky immediately became a favorite place for Kharkiv residents. From the very first days, Nikolsky began to break all possible records for shopping center activity across the whole country. We were happy. We made plans, huge plans, but life had a different scenario for us.”

The Mall in Wartime

When the Nikolsky Shopping and Entertainment Center opened its doors in May 2021, it made its debut with the kind of fanfare expected for a major new mall in an emerging retail market. Boasting Ukraine’s largest domed roof structure, the 1.1 million square foot mall – of which around half is dedicated to retail – offered over 150 stores, a hypermarket, restaurants, a multiplex movie theater, bowling, fitness facilities, and an entertainment zone for children.

The shopping center is located in the heart of the city, close to many well-known urban destinations, including the Kharkiv Choral Synagogue, Kharkiv State Scientific Library, Shevchenko Park, Pokrovsky Square, Kharkiv Historical Museum, and Constitution Square.

However, in February 2022, Russia invaded Ukraine, and on March 9, a Russian missile hit the mall’s roof, causing a fire on the fourth floor. It destroyed the ventilation chamber on the fifth floor and affected multiple other areas, including the dome, façade, climate systems, glass installations, and multimedia displays. Inside, the atrium supports collapsed, glass storefronts shattered, and interior decor spanning the second to fourth floors was heavily damaged. Thankfully, there were no casualties as the mall was empty at the time of the strike.

“Nikolsky was directly hit by a missile. Everything was destroyed, the city was under constant shelling, constant danger. Without hesitation, we decided to start reconstruction work as soon as possible and ensure the safety of visitors and staff by arranging shelters,” Bushmakin said. He stressed that the reason this was undertaken was not only for the sake of business recovery, but it was necessary to show that “life goes on, and we will not be broken.”

Restoration began in April 2022, prioritizing the underground level — home to the Silpo supermarket and parking lots — both for public use and as a makeshift shelter during ongoing air raids. “Four months later, we had already opened the first level, and every month, we launched a new level. Every day was a challenge, from the shortage of materials to the constant bombing of the city, but in October, we completely restored the entire center. It was not just reconstruction. We turned to the idea of socializing space. We begin to organize events that help people unite and distract from the terrible reality,” Bushmakin said.

By June 17, the first and second floors were operational again. The third floor followed on October 21, and by November 18, the fourth floor — along with the multiplex movie theater, sports facilities, a bowling alley, and food court — had reopened to the public.

“In particular, we conducted charity and social projects in the shelters, and one of the most emotional was a movie theater in the underground parking area,” he said. “We put up a huge screen, and people who stayed in the city came just to watch a movie. Our center in the city center was a place where you could find shelter and recharge your phone via the generators, because there was a blackout all over the country.”

By December 1, 2023, all the damaged retail space had been restored and handed over to tenants for their fitouts.

Restoration in a War Zone

According to Maksym Havriushyn, the mall’s COO, the decision to push ahead with the restoration process began despite the fact that Russian troops were just around six miles from Kharkiv. He emphasized the importance of reopening before winter, so the building would remain usable, and to restore infrastructure when much of the city’s retail was shut. He also noted the mall’s role in offering both shelter and a return to normalcy. The total cost of restoration approached $18 million, while overall losses, including depreciation, reached around an estimated $150 million.

The revitalized mall saw its visitor numbers rebound, and by February 19 this year, the Nikolsky Center had welcomed its 30 millionth visitor since opening. That is all the more remarkable given that currently the city’s population is estimated to be less than half of the 1.5 million who lived there pre-war. Resilience is a powerful mindset; the mall and bars remain busy, with the city’s epithet ‘unbreakable’ seen everywhere.

Nikolsky’s Bigger Story

In 2024, the total turnover of Budhouse Group’s shopping centers amounted to nearly $300 million, 33 percent up over 2023 in local currency. They have withstood unimaginable challenges, impacted by the closure of the Fabrika shopping center in Kherson, which was destroyed by Russian bombing.

“Nikolsky is like a phoenix that rose from the ruins and began its new life,” Bushmakin said. “Today we can broadly say again, the footfall has returned to pre-war levels, and now we are showing record results again. First of all, this is not a marketing achievement. No, it is more than that. It is a human achievement.

“We believe that Nikolsky is not about walls. It is not about commerce. It is about people. It is about the residents of Kharkiv who returned home. It is about the tenants who risked reopening stores. It is about the team that worked in basements without lights,” he said. “We want this story to become not only the story of Nikolsky, Kyiv, Kharkiv or Ukraine, but also an example for the whole world. The impossible is possible if you have great people and faith behind you.”