Russian retail sector slowly recovering as native brands 'plug gaps'

Russian clothing brands are beginning to plug the gaps left by the droves of Western companies that have exited the country since its invasion of Ukraine.

Inditex, the owner of Zara, received approval to sell off its 500-plus portfolio of Russian stores to a UAE-based buyer in April. Its flagship store in Moscow, which has stood dormant for over a year, recently reopened under new brand MAAG.

Oleg Klimov, president of Russia’s Council of Shopping Centres, told Reuters the Western exodus resulted in “heavy industry losses” at an estimated 200 billion roubles ($2.47 billion).

"People in general just did not understand what was going on," Klimov told the news agency, claiming that the market is now slowly beginning to recover.


Despite Russian companies plugging gaps left by their Western counterparts, sanctions including export bans continue to complicate trading routes for Russia’s retail sector.

"The biggest problem is international transactions," Ksenia Zhdanova, who runs her own KSEW clothing brand and is commercial director for online Russian designer wear marketplace Richmill, told Reuters. "Our industry is extremely dependent on import."

Uniqlo recently announced it would permanently leave the Russian market after putting its operations in the country on hiatus last year.

    Share Story:

Recent Stories


Poundland significantly reduces antisocial behaviour, aggression and shoplifting with Motorola Solutions VT100 body cameras
Retail should not be a high-risk occupation. As a company, we are focused on listening to our colleagues and customers to help them with the issues they are facing in-store and so far, the feedback on our body cameras has been excellent. They act as a great visual deterrent, help to de-escalate situations and overall, this project has significantly aided our goal to make the retail environment safer.

For further information on Motorola Solutions’ retail security products, including body cameras, click here.

Supplying demand: how fashion retailers can meet the needs of customers and still be sustainable
The fashion industry is no stranger to breaking the mould and setting trends, but the pursuit of style can come at a huge cost to the environment.

New legislation, such as the European Union's Ecodesign for Sustainable Products Regulation, will set mandatory minimums for the inclusion of recycled fibres in textiles, making them longer-lasting and easier to repair.

Advertisement