Retail in russia Is Closing Down En Masse

russia’s clothing market is shrinking rapidly. In 2025, the o’stin chain closed 62 shops across the country and cut its workforce by 15% – the chain’s expansion has been put on hold. One of russia’s largest retailers, “gloria jeans”, plans to close about 150 shops by the end of 2026.

Mass layoffs have also affected other market players. The outerwear chain “snezhnaya koroleva” cut its staff by 14%, the footwear and accessories chain “kari” – by 12.5%, and “sportmaster” – by 5%. The official explanation is “optimization” amid falling consumer demand.

In moscow alone, there were by 4,500 fewer shops operating at the start of 2026 than a year earlier, in st. petersburg – by 3,000 fewer. This is the sharpest decline since the early 2000s. The overall picture across the country is no better: shops of all formats are closing – from grocery shops and supermarkets to fruit stands, mobile phone shops, and clothing boutiques.

Among the reasons – rising retail costs, tax changes, declining consumption, and high inflation. Notably, the mass exodus of foreign brands from russia after 2022 did not give local chains the expected advantages: the vacated niches remained unfilled.