russian Retail on the Verge of Collapse

russian retail is plunging into crisis – in the first nine months of 2025, the number of new brands decreased by almost 40 %, and by the end of the year it will have halved. Due to the collapse of purchasing power, rising rents, and credit problems, the development of the fashion market has virtually stopped.

Between January and September, only 27 new brands appeared in the rf – half as many as last year. Cosmetics shops are closing en masse, there are no new foot-wear brands at all, and the share of closed clothing shops in moscow shopping centers has reached 38 %.

Most new brands are now going online to marketplaces, as opening an offline shop is becoming a luxury.

The market can only begin to “come back to life” if the economy stabilizes and interest rates on loans decrease. A similar crisis occurred in 2015, when it took the retail trade almost three years to recover.