Russia’s retail turnover will fall by up to 9% this year, according to a major Russian retail lobby, as the industry faces problems with logistics, supply chain and declining consumer purchasing power.
Many Western companies have left Russia since the invasion of Ukraine began in February, creating problems in the supply chain, while high inflation is fueling prices and reducing demand.
“For the year we expect a drop in total retail turnover of 8% -9%,” said Igor Karavaev, head of the presidency of the association of retail companies.
“This is not surprising. The difficulties facing the retail industry this year are unprecedented. The destruction of logistics chains, the need to quickly find new suppliers, the pressure of inflation, the lower demand.
“For the first time, the industry is feeling the impact of these factors at the same time.”
Karavaev said food retailers were likely to do better, noting that discount stores were growing in popularity as consumers tried to save money.
Russian malls have lost up to 30% of their traffic due to the departure of many Western brands.
Source: Capital
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