Russia’s retail landscape is undergoing significant changes as numerous stores, ranging from supermarkets to clothing boutiques, shutter their doors in response to declining consumer demand. Major retail chains are reducing their workforce, halting expansion plans, and closing hundreds of locations across the country.
Notably, the O’stin chain announced the closure of 62 stores nationwide in 2025, resulting in a 15% reduction in staff. The company has also paused its development initiatives. Similarly, Gloria Jeans is set to close approximately 150 stores by the end of 2026.
The trend is not limited to these retailers. Other companies, such as the outerwear brand “Снєжная королєва,” have cut their workforce by 14%, while Kari and “Спортмастер” have reduced staff by 12.5% and 5%, respectively. Official statements from these companies cite “optimization” efforts amid a drop in consumer spending.
Statistics reflect these challenges, with Moscow experiencing a loss of 4,500 stores compared to the previous year, and Saint Petersburg seeing a reduction of 3,000 outlets in the same timeframe. This marks the most significant decline in retail presence since the early 2000s.
Store closures span all formats, including grocery stores, supermarkets, fruit kiosks, communication salons, and clothing boutiques. Contributing factors include rising operational costs, tax changes, a decrease in consumer spending, and high inflation rates.
The exit of foreign brands from the Russian market post-2022 has not provided the anticipated benefits for local retailers. The expected market gaps have not been filled adequately, leaving many businesses struggling.
Meanwhile, the Russian economy continues to grapple with the repercussions of sanctions and attacks on its critical energy infrastructure. Reports indicate that oil giant Rosneft lost nearly 73% of its net profit by the end of 2025, with company leadership describing the situation as an “ideal storm.” Additionally, drone attacks on ports in Ust-Luga and Primorsk have severely impacted maritime oil exports, costing the Kremlin over $1 billion in just one week.
As of April 1, reports emerged of a near-total halt in oil exports through the Baltic Sea. With the cessation of oil and liquefied gas exports through Baltic ports, estimates suggest that Russia is losing more than $70 million daily.
Russia's retail sector is facing unprecedented challenges, with major store closures driven by declining consumer demand and economic pressures. The fallout from sanctions and infrastructure attacks continues to exacerbate the situation, leading to significant losses in the economy.