Russia's Retail Sector in Deepening Crisis as New Brand Entries Plummet

October 30, 2025 - Russia's retail industry is facing a deepening crisis, with the number of new brands entering the market dropping by nearly 40% in the first nine months of 2025 and projected to fall by half by year-end, according to information from Ukraine's Foreign Intelligence Service. Between January and September, only 27 new brands launched in Russia—half the number recorded during the same period last year. Cosmetics stores are closing en masse, no new footwear brands have entered the market, and 38% of clothing stores in Moscow shopping centers have shut down.

The downturn is attributed to a collapse in consumer purchasing power, rising rental costs, and tightening credit conditions, which have collectively stalled the development of the country's fashion sector. Most emerging brands are now opting for online marketplaces, as opening a physical retail location has become prohibitively expensive. Analysts suggest the market will only begin to recover if the economy stabilizes and interest rates decline, noting a similar retail crisis in 2015 took nearly three years to rebound.