“Shops for the poor” are taking over the Russian market: their share has increased by a quarter in a year
27 April 03:16
Russia has seen significant changes in the structure of the retail market, indicating a gradual decline in consumer purchasing power. Despite an overall 5.8% increase in the number of retail outlets, discounters—stores offering goods at prices significantly below the market average—have become the main driver of growth, reports [Komersant], citing Ukraine’s Foreign Intelligence Service.
“Over the year, the number of such retail outlets grew by 26.4%, which is the highest figure among all segments of the Russian retail market. At the same time, their revenue increased by 67.3%, indicating a sharp rise in demand specifically for cheap goods and the budget segment,” the report states.
The popularity of so-called “stores for the poor” is directly linked to economic difficulties and cautious consumer behavior. Russians are increasingly turning away from more expensive formats in favor of affordable alternatives, focusing primarily on price.
At the same time, traditional supermarkets and neighborhood stores are experiencing a moderate decline and restructuring and are no longer the main drivers of the market.
Overall, these trends point to structural changes in the country’s economy: demand is shifting toward cheaper goods and retail formats, which is an indirect indicator of declining household incomes and increasing financial pressure on households.
