International clothing retailers have closed more stores than they have opened in Russia this year as the economic crisis slashes Russians’ spending power, the Kommersant newspaper reported, citing a recent study.
Between July 2014 and July 2015, foreign clothing retailers opened 991 new outlets and closed 1,024 stores, a study by retail consultancy Magazin Magazinov showed, Kommersant reported Wednesday.
This is the first time in five years that foreign retailers are closing more outlets that they are opening, Magazin Magazinov's analysts said.
The previous data sample, taken from July 2013 to July 2014, showed international clothing retail chains opening 1,234 stores in Russia, while closing only 314, according to the report.
The reversal coincides with a weakening ruble and the fall of real wages, forcing Russians to cut their spending.
According to Russian federal statistics agency Rosstat, trade turnover in Russia dropped by 8.5 percent in the first nine months of 2015.
The hardest hit by the decline in purchasing power are foreign retailers operating in the medium-price segment.
Ninety percent of the stores forced to close between July 2014 and July 2015 belong to the medium-price segment, including U.S. clothing retailers Esprit and American Eagle Outfitters, Yulia Sitnikova, senior research consultant at Magazin Magazinov, said, Kommersant reported.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
