Crisis in Russian retail: Intelligence reports mass closure of clothing and footwear stores

In Russia, cosmetics shops are closing en masse, there are no new footwear brands at all, and the share of closed clothing stores in Moscow shopping centres has reached 38%.

Source: Foreign Intelligence Service of Ukraine

Details: According to its data, between January and September, only 27 new brands appeared in Russia – half as many as during the same period last year.

It is noted that due to the collapse in consumer purchasing power, rising rental rates, and credit problems, the development of the fashion market has practically come to a standstill. Most new brands are now moving to online marketplaces, as opening an offline shop has become a luxury.

"The market may only begin to revive once the economy stabilises and loan interest rates decrease. A similar crisis occurred in 2015 – at that time, retail recovery took nearly three years," the Foreign Intelligence Service of Ukraine said.

Background: The turnover of Ukrainian companies operating in retail trade reached UAH 936.6 billion (about US$22 billion) in January-June 2025, which is 17% higher than in the same period last year.

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