Revenue of 'stores for the poor' in Russia grew by 67 percent in a year – intelligence

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The number of discounters in the RF increased by 26.4%, and their revenue by 67.3%. Demand is shifting toward cheap goods due to declining household incomes.

Significant changes in the structure of the retail market have been recorded in Russia, indicating a gradual decline in the purchasing power of the population. This was reported by the Foreign Intelligence Service of Ukraine (SZRU), UNN informs.

Details

It is noted that despite an overall 5.8% increase in the number of retail outlets, the main driver of development has been discounters—stores that offer goods at prices significantly lower than the market average.

Over the year, the number of such retail facilities grew by 26.4%, which is the highest figure among all segments of Russian retail. At the same time, their revenue increased by 67.3%, indicating a sharp rise in demand specifically for cheap goods and the economy segment,

- the report says.

It is pointed out that the popularity of so-called "stores for the poor" is directly linked to economic difficulties and cautious consumer behavior: Russians are increasingly abandoning more expensive formats in favor of affordable alternatives, focusing primarily on price. Meanwhile, traditional supermarkets and "convenience stores" are showing a moderate contraction and reformatting, and are no longer the main drivers of the market.

"Overall, such dynamics indicate structural changes in the country's economy: demand is shifting toward cheaper goods and retail formats, which is an indirect indicator of declining household income levels and increasing financial pressure on households," the SZRU concludes.

Recall

According to the SZRU, the Russian economy is demonstrating a systemic decline due to the war against Ukraine, which is affecting the labor market. In the summer, Russian state enterprises and private companies will begin cutting staff.

Russian banks are cutting loyalty programs and cashback payments due to the economic crisis – Foreign Intelligence Service of Ukraine21.02.26, 01:37

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