Russia’s DIY (Do-It-Yourself) and home improvement market is facing a significant contraction. A sharp decline in housing demand, soaring inflation, and stagnant real incomes have forced major retail chains to undergo radical restructuring, closing dozens of outlets across the country.
Key Crisis Data:
- “Stroitelny Dvor”: By the end of 2025, this chain shrunk by 23%, closing 98 stores. The retailer is left with 322 outlets.
- OBI (“Domlenta”): The number of hypermarkets fell by 12% to just 23 locations. Revenue for the brand’s legal entities dropped by 10% to 25.2 billion rubles.
- “Lemana Pro” (formerly Leroy Merlin): Even the market leader is losing ground, with revenue declining by 6% to 550 billion rubles.
- Overall Market: Total sales for the sector decreased by 2%, totaling 1.15 trillion rubles.
Analytical Summary:
The state of construction retail in 2026 is a textbook “domino effect” triggered by the crisis in the residential construction sector.
Paralysis of the Mortgage Engine: The primary driver of DIY sales—the purchase and renovation of new apartments—has ground to a halt. Prohibitive mortgage rates and the withdrawal of state subsidy programs have decimated demand for primary housing, immediately impacting the renovation market. Professional clients and developers (the B2B segment) are slashing procurement, as confirmed by “Lemana Pro” executives.
Cost Inflation and “Delayed Renovation”: Rising prices for building materials (driven by logistics, import costs, and labor shortages) have turned home renovation into an unaffordable luxury for many Russians. The population has switched to “survival mode,” opting for minor repairs over major overhauls. This explains why even discount retailers are seeing revenue drops.
Retail for Survival: The closure of nearly 100 outlets by a single chain in one year is more than “optimization”—it is a fight for existence. Retailers are abandoning unprofitable locations in regions where purchasing power has plummeted most severely. If the stagnation in housing persists, a wave of bankruptcies among mid-tier players is inevitable, leading to a market consolidation where only those who successfully transition to online sales will endure.