Kathrine Frich
Russia’s consumer economy is under mounting pressure as households tighten spending and costs surge.
With the war in Ukraine draining resources and sanctions squeezing income, the crisis is now hitting the country’s retail sector.
Stores under pressure
Russia’s clothing retail sector is facing a sharp downturn, with up to 40% of stores at risk of closing by 2026, according to industry representatives cited by The Moscow Times and Onet.pl.
Retailers say falling demand, rising rents, higher taxes, and competition from online platforms are putting severe strain on the market.
Consultant Maria Gerasimenko said the sector is shifting from a “growth model” to a “survival model,” with weaker players most at risk.
Falling demand
Consumer behavior has also changed significantly.
Shoppers are cutting back on non-essential purchases and opting for more practical clothing choices, according to industry analysts.
Data from OFD Platform shows spending on clothing, footwear, and accessories dropped by 11% last year, while foot traffic in shopping centers declined by 6%.
Industry slowdown
The slowdown is visible across the sector.
In 2025, 28 fashion brands exited the Russian market, most of them domestic, and no new brands entered during the first quarter of 2026.
Around 80% of shopping centers reported falling turnover, with one in five seeing declines of more than 20%.
Turn to africa
In response, Russia is looking to new markets and suppliers.
Products from Ethiopia, including clothing, leather goods, and cosmetics, have begun appearing on the Wildberries platform, according to company founder Tatiana Kim, cited by TASS.
Lower-cost imports are seen as a way to help retailers reduce prices and remain competitive.
Growing ties
Trade between Russia and Ethiopia is also expanding.
Russian Ambassador Yevgeny Terekhin said trade nearly tripled in 2025, surpassing $435 million.
Moscow is increasing exports of machinery and fertilizers, while Ethiopia supplies goods such as coffee and agricultural products.
Sources: The Moscow Times, Shopper’s, TASS, Onet.pl.
