Russia's retail stores struggle against online marketplaces' dominance
In recent developments, the demand for office supplies in Russia has seen a significant surge, with a year-on-year increase of 70% over the last two months (April-May 2025). However, this growth has not been evenly distributed across the country, as some regions have experienced store closures.
The most notable closures have occurred in Omsk (-26%), Rostov-on-Don (-24%), and Nizhny Novgorod (-20%), according to the latest data. Meanwhile, the number of office supply stores nationwide has decreased by 5% to 11,760 retail outlets. In major cities like Moscow and St. Petersburg, the decrease was 13% and 8%, respectively.
Interestingly, the shift towards online sales has been a driving factor in this trend. Marketplaces, such as those in Russia, can reduce taxable revenues by utilising agency agreements and hiring self-employed workers, thereby saving on income tax and social contributions. The advantage of these marketplaces, according to Alexei Moskalyuk, President of the Association of Electronic Trade Representatives, is the free delivery for buyers, covered by commission.
This shift online is evident in the sales figures. In May alone, sales of office supplies on these marketplaces reached 3.6 billion rubles, marking a 68.9% increase compared to the same period in 2024. The total sales of office supplies on the two largest marketplaces in the country from April 1 to May 26, 2025, amounted to 7.2 billion rubles, a 51.3% increase year-on-year.
However, not all office supply stores can make the transition to online sales. Some stores are unable to close due to outstanding debts, while others plan to do so after the peak sales season ends in late September, according to Boris Katz, the head of the board of directors of the specialized hypermarket network "Leonardo". Katz predicts that the number of office supply stores may decrease by another third in the next few years.
The ongoing geopolitical tensions and military conflicts, sanctions and restrictions on foreign products and software, widespread disruptions in internet and transport, and international sanctions could be contributing factors to these retail and supply chain disruptions. These factors might include office supply stores, as they could face logistical challenges, sanctions restricting imports, and economic instability associated with geopolitical conflict.
The future trend may likely involve a push toward domestically produced goods and software alongside state-driven economic controls, potentially reshaping the retail landscape. For precise data on office supply store closures and more specialized analysis, further detailed market or government reports from 2025 would be needed.
Despite the challenges, there has been a slight increase in the average price of office supplies by about 3%. However, sales of certain products, such as notebooks, have decreased by 8.4% and 5.8% year-on-year, respectively.
[1] Source: https://www.reuters.com/world/europe/russian-strikes-military-actions-cause-disruptions-infrastructure-logistics-2025-04-01/ [2] Source: https://www.bbc.com/news/world-europe-56430865 [3] Source: https://www.themoscowtimes.com/2025/05/31/internet-problems-cause-cash-registers-to-fail-in-russia-a75117 [4] Source: https://www.reuters.com/business/sanctions/us-sanctions-targeting-russian-businesses-intensify-2025-04-01/
- The shift from traditional stores to online marketplaces, such as those in Russia, has become a significant trend in the office supply business, driven by factors like free delivery for buyers and reduced taxable revenues.
- Despite the challenges facing office supply stores, there has been a slight increase in the average price of office supplies, but sales of certain products, like notebooks, have decreased.
