In 2026, not a single new foreign brand entered the Russian market
29 May 12:14
In the first five months of 2026, not a single new foreign brand entered the Russian market. This is the first time this has happened since the start of the full-scale war against Ukraine, according to Russian propaganda media citing data from the consulting firm CORE.XP, as reported by "Komersant Ukrainian".
For comparison, during the same period in 2022, 16 international brands began operating in Russia, and nine in 2025. At the same time, the number of new foreign players in the Russian market had already dropped sharply last year: while 24 brands opened offline stores in the country in 2024, only 12 did so by the end of 2025. Among them were the Spanish jewelry brand Pdpaola, the Belarusian clothing manufacturer Mua, and the Italian brand Kappa.
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At the same time, since the beginning of 2026, at least seven international brands have left Russia, including the Turkish brands Les Benjamins and Karaca Home, as well as the Kazakhstani brand Gaissina, says Yulia Kuznetsova, director of the retail real estate department at Nikoliers. Companies that have remained in the current economic conditions, she says, are adopting a cautious strategy and expanding through marketplaces, local distributors, or niche formats. Foreign brands are currently not ready to invest in the Russian market, confirmed Yevgeniya Khakberdiyeva, regional director of the retail real estate department at NF Group. This is influenced by cooling consumer demand, CORE.XP noted. According to Rosstat, the consumer confidence index fell by 1 percentage point in the first quarter of 2026 compared to the previous quarter—to minus 12%.
Against this backdrop, traffic at shopping centers is declining. According to Focus Technologies’ estimates, mall foot traffic in January–April was 2% lower than a year earlier. By the end of 2025, the figure had decreased by 3% year-over-year. Compared to pre-crisis 2019, foot traffic has fallen by 25–26%.
Another reason for the decline in activity among international brands is the U.S. and Israel’s war against Iran, according to Natalia Kermedchieva, an expert at the Association of Retail Real Estate and Retail Experts (ATER). According to her, Dubai has long been a key logistics hub for international shipments, resulting in a threefold increase in trade between Russia and the UAE over the past five years, reaching nearly $10 billion. However, military operations in the Middle East have led to higher shipping rates, delays in the delivery of collections, and additional pressure. In particular, shipping costs have increased by 30–50%.
Russian retailers have also begun closing stores en masse due to falling sales. This trend began in 2025 and has intensified this year. Prior to this, the Central Bank noted that Russians were shifting to a frugal mode. The regulator’s study showed that consumers are cutting back on purchases of expensive electronics, food, clothing, and footwear. According to a survey by the Center for Social Research “Platforma” and the company “OnIn,” the majority of Russians (82%) are concerned about the economic situation in the country and expect that over the next year, prices for food and utilities will rise faster than their incomes.
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