“Shops for the Poor” Taking Over russia’s Market

russia has seen significant changes in the structure of its retail market, indicating a gradual decline in consumer purchasing power. Despite the overall 5.8% increase in the number of retail outlets, discounters – shops offering goods at prices significantly below the market average – have become the main driver of growth.

Over the course of the year, the number of such retail outlets grew by 26.4% – the highest rate among all segments of the russian retail market. At the same time, their revenue increased by 67.3%, indicating a sharp rise in demand specifically for low-cost goods and the economy segment.

The popularity of so-called “shops for the poor” is directly linked to economic difficulties and cautious consumer behavior. russians are increasingly turning away from more expensive formats in favor of affordable alternatives, prioritizing price above all else.

At the same time, traditional supermarkets and neighborhood shops are experiencing a moderate decline and restructuring and are no longer the main drivers of the market.

Overall, these trends point to structural changes in the country’s economy: demand is shifting toward cheaper goods and retail formats, which is an indirect indicator of declining household incomes and increasing financial pressure on households.