The Russian retail market is witnessing a significant increase in the number of discounters—stores offering goods at reduced prices. Over the past year, the number of such retail outlets has grown by 26.4%, which is a record among all retail segments in Russia. Additionally, the revenue of discounters has risen by 67.3%, indicating a high demand specifically for inexpensive goods and the economy segment.
This is reported by Finway
Demand for the Economy Segment is Growing
The main reason for this trend is the economic difficulties faced by the population of the Russian Federation. More and more Russians are opting for stores for the poor, choosing cheap alternatives over more expensive retail formats. This demonstrates a shift in consumer behavior towards affordability and cost-saving.
At the same time, traditional supermarkets and neighborhood stores have begun to lose their positions, showing reductions or reformatting. They are no longer the leading drivers of the market, giving way to discounters.
Changes in the Structure of the Market and the Russian Economy
“Overall, this trend indicates structural changes in the country’s economy: demand is shifting towards cheaper goods and trading formats, which is an indirect indicator of the declining income levels of the population and increasing financial pressure on households,” noted the intelligence report.
It is also noted that the Russian authorities are currently actively seeking new sources of budget replenishment, particularly through increasing the tax burden on the population and businesses, which only exacerbates financial tension among citizens and enterprises.