Retail turnover in Russia will fall by up to 9% this year, a leading Russian lobby group said on Tuesday, as the sector grapples with logistics problems, supply chain problems and a decrease in consumer purchasing power.
Many Western companies have shunned Russia since it sent troops to Ukraine on Feb. 24, creating supply chain headaches as high inflation fuels prices and depresses demand.
“For the year, we expect a decline in total retail turnover in the range of 8-9%,” Interfax said quoting Igor Karavaev, head of the Presidium of the Association of Businesses of retail.
“It’s no surprise… The challenges faced by the retail industry this year are unprecedented – the destruction of supply chains, the need to quickly find new suppliers, inflationary pressure, falling demand. The industry is feeling the impact of these factors simultaneously for the first time,” he said.
Karavaev said food retailers are likely to fare better and noted discount stores are growing in popularity as consumers look to save money.
Russian shopping centers have been “turned off” and lost up to 30% of their footfall due to the exit of many Western retailers, a major property developer said on Monday.
(Reporting by Reuters; editing by Jason Neely)
Reuters
