In the first quarter of 2023, foreign brands saw a significant retreat from Moscow’s consumer hubs, with their presence in major shopping centers dropping by nearly half. This shift is highlighted by the study conducted for RBC, drawing on research from the consultancy firm Nikoliers. The takeaway is clear: international labels are retreating from prominent retail spaces, while domestic players are stepping in to fill the void and even extend their reach. This pattern reflects a broader restructuring of the retail landscape in the Russian capital, where occupancies in vacated spaces are increasingly taken over by local companies that either already have momentum in the market or have seized the assets of foreign operators who exited or scaled back operations. The dynamic underscores a transition from a foreign-brand-dominated mix to a more domestically powered retail ecosystem, with implications for brand strategy, consumer choice, and competitive positioning in Moscow’s shopping districts.
According to the quarter-one data, foreign brands accounted for 35.9 percent of the occupancy in large-format malls in Moscow, a figure that marks a substantial decline from the level seen at the end of 2021. The contraction is part of a longer trend that has reshaped the tenant mix across the city’s premier retail spaces. While international names retreat or reorganize, the core of the market is increasingly populated by domestic organizations. Some of these are brands that have already established a robust presence in Russia and are expanding their footprint, while others have acquired the businesses of departing foreign companies, thereby accelerating local market consolidation. This shift is consistent with broader macroeconomic developments and the evolving consumer environment, which has prompted domestic operators to leverage existing networks, supply chains, and brand loyalty to capture more shelf space and consumer mindshare on home soil.
The publication also notes that new entrants from other countries have begun to establish a foothold in Russia, reflecting a continued interest from international players despite the changing market. For instance, in the preceding year a notable wave of new brands—more than half of which originated in Turkey—entered the Russian market and began operating in various retail formats. This influx demonstrates that while some foreign operators have reduced presence, others perceive opportunities in localized adaptation, supply chain resilience, and the ability to tailor offerings to Russian consumers. The evolving tenant mix suggests a selective approach to market entry, where brands weigh factors such as logistics, regional preferences, and regulatory conditions when deciding where to invest and how to position themselves in Moscow’s high-traffic retail corridors.
In another development, a February survey from Credit Suisse indicates that roughly 6 percent of large Swiss companies with operations in Russia are contemplating a potential return within the next three years, despite the disruptions caused by the Ukraine-related operation. The sentiment captured by this research reflects cautious optimism among some multinational players: they see a path to re-establish operations if geopolitical tensions ease and the business climate stabilizes. For Moscow retailers and their counterparts across Russia, this anticipated re-entry from Western and other international brands could reshape competitive dynamics, encouraging local firms to strengthen capabilities, diversify product assortments, and invest in customer experience to preserve an edge even as foreign competition re-enters or intensifies. The longer-term picture points to a retail market that remains fluid, with domestic operators occupying vacated space now laying the groundwork for renewed international interest under evolving political and economic conditions. [Source attribution: Nikoliers study via RBC; Credit Suisse consumer sentiment survey.]