Smart Consumption: How 2025 Reshaped Russian Retail

Modest Growth

According to estimates by Natsionalnye Kreditnye Reitingi (National Credit Ratings) agency, retail trade turnover in Russia will grow by 7.5% in 2025, exceeding 60 trillion rubles for the first time. Accounting for inflation, which reached 6.64% year-on-year in November, real growth in the sector will be modest—roughly in line with GDP growth, around 1%. However, these figures mask a more complex picture of the market's condition and Russian consumer behavior.

Stanislav Bogdanov, Chairman of the Presidium of the Association of Omnichannel Retail Companies (AKORT), told Argument Media that the bulk of Russian spending continues to go toward food and everyday essentials. At the same time, the high key rate and persistent inflation have noticeably influenced shopper behavior.

"The 'smart consumption' model has strengthened considerably: shoppers are increasingly choosing value formats, neighborhood stores, and discounters that allow them to keep their receipts under control without noticeably compromising their accustomed level of quality and convenience."

Challenges and Risks for 2025

Stanislav Bogdanov identifies the main challenge for grocery retail as maintaining accessibility and service quality against the backdrop of high rates and rising costs. Shoppers are increasingly choosing economical formats and stores close to home, but aren't willing to sacrifice convenience and their accustomed level of service.

"In response, retail is betting on improved efficiency and more precise format management: neighborhood stores and discounters are playing a stronger role, franchise projects and omnichannel services are developing, allowing retailers to stay closer to people's actual routes and habits."

Magnit's press service points to the shortage of frontline staff, which remains one of the main challenges for many industries, including retail.

"We're addressing the problem through automation, implementing technology in retail and logistics, and expanding our target candidate pool. We're also broadening our candidate funnel and actively hiring teenagers from age 14 and people over 50 for retail positions, which allows us to fill vacancies, develop our employer brand, and maintain high service standards in stores."

The consumer electronics and appliances market had a difficult year: sales in monetary terms fell 9% over the first ten months, with declines reaching 25% in certain categories. In unit terms, however, the market showed growth of 1.7%.

According to M.Vidео's press service, the main risk for 2025 is the lengthening device replacement cycle. Consumers are updating their electronics less frequently and choosing more deliberately, evaluating service life and practical value. The bulk of unit sales went to affordable and mid-priced models, while the premium segment was supported by flagships and demand for devices with larger memory capacity.

"The response to these challenges was an expansion of product ranges in the mass-market and mid-price segments, along with developing sales through online channels. Companies actively worked with promotional mechanics, service offerings, attractive fintech tools, and new formats of customer engagement, which helped maintain demand even amid the overall market cooling."

M.Video's forecast for 2026 is cautiously optimistic: pent-up demand, a gradual reduction in the key rate, and the emergence of new technological drivers—such as the launch of fresh device generations—could support recovery. Sharp growth in volume terms shouldn't be expected, but the structure of demand will shift toward more functional and durable devices.

Achievements of 2025

2025 became a year of adaptation and searching for new growth points for retail. M.Video highlights the development of its own marketplace: expanding the product range, onboarding new partners, and improving logistics allowed the platform to grow faster than the market even amid restrained demand.

"Special mention should be made of the development of the M.Master service division. Delivery, installation, setup, repair, maintenance, buyback, and trade-in services allow customers to make more informed choices and increase trust in purchases. The development of the service ecosystem became an important factor in customer retention and improving the quality of customer experience."

Magnit launched a new compact ultra-convenience format and also updated the concept of its neighborhood stores, where it's actively developing the quick-service food segment with coffee, street food, and ready-made meals.

"The trend toward merging offline and online channels and transforming them into a single, seamless customer experience continues. Magnit is developing its foodtech division (its own delivery service) and its own marketplace, Magnit Market."

Overall, retail demonstrated its ability to adapt: seeking new formats, developing services and technologies to stay closer to customers and maintain sustainable growth even in challenging conditions.

New Year's Wishes

If Russian retail had the opportunity to make a wish to Ded Moroz, it would undoubtedly concern macroeconomic stability. On behalf of the industry, M.Video wishes for a recovery in consumer demand and further reduction of the key rate. This, in the company's view, would allow the accumulated pent-up demand to be realized, restore consumer confidence, and give the market momentum for sustainable and predictable development.

But there's also a simpler, more human wish. Stanislav Bogdanov (AKORT) notes: the main thing is health, strength, and more warmth in the company of loved ones for all customers. So that amid everyday hustle, people have time for family, home rituals, and those small joys for which, ultimately, all of retail works.