Russian retail is facing a sharp cooling in its most dynamic market segment. By the end of 2025, the pace of opening new convenience stores (neighborhood stores) crashed 6-fold — the largest drop since 2017. According to Infoline data, the top 200 FMCG retailers opened only 952 new locations, compared to 5,660 the previous year. A format that was long considered a “gold mine” is rapidly losing profitability amid mass consumer belt-tightening.
Belt-Tightening and the Liquor Store Crisis
The hardest hit were the expansion leaders of previous years. The most significant decline in activity was seen in the Krasnoye & Beloye and Bristol liquor chains, as well as Vkusvill and Yarche. The reasons are clear: Russian purchasing power is falling, while business costs — from logistics to rent — are soaring. With payback periods for new outlets stretching to critical levels, retailers are opting to close unprofitable stores rather than fighting for customers in depressed regions.
Social Degradation Disguised as Optimization
For Europe and developed markets, the contraction of neighborhood retail is a surefire sign of a deep consumer crisis. While state media in the Russian Federation report on import substitution, the real sector is shrinking its physical footprint in accessible areas. This leads to increased monopolies of major chains and a decline in service quality for ordinary citizens. The aggressor’s economic resource base is being depleted not just at the technological level, but at the level of basic consumption, turning comfortable urban environments into survival zones.