Economic downturn: Russia sees first decline in number of shops in 25 years

Russia has recorded its first decline in the number of shops since 2000 amid a worsening economic situation and a shift by consumers towards saving.

Source: The Moscow Times, citing data from the consulting company INFOLine, as cited by Forbes

Details: In particular, as of the beginning of 2026, there were 82,500 retail outlets operating in Moscow, which is 4,500 fewer than a year earlier.

In St Petersburg, their number decreased from 44,000 to 42,200 over the year.

"Overall, the situation across the country is no better than in the capitals. This applies to all retail outlets – from neighbourhood grocery shops, supermarkets and fruit kiosks to mobile phone stores and clothing shops," said INFOLine founder Ivan Fedyakov.

According to Fedyakov, the closures are driven by worsening business conditions, as companies face declining consumption and high food inflation, as well as competition from marketplaces, rising operating costs, tighter migration legislation and higher taxes.

For example, whereas previously a shop with a turnover of up to 60 million roubles (approx. US$739,413) per month could operate under a simplified taxation system, after the threshold was reduced to 20 million roubles (approx. US$246,471), many have been forced to close.

Fedyakov added that even during the pandemic, when the sector was hit hard, most shops continued operating.

After the start of the full-scale war in 2022, Western brands left the country en masse, but Russian retailers took their place. "And in 2025, when we did not observe any particular shocks, we suddenly recorded a significant decline (in the number of retail outlets)," the INFOLine founder noted.

Background: In Russia, no new brand stores opened in January–March 2026; this has happened only once before – in the first quarter of 2022, following the shock caused by the start of Russia's full-scale invasion of Ukraine.

Support Ukrainska Pravda on Patreon!