Russia’s Fashion Market Enters Survival Mode as Dozens of Brands Shut Down

Russia’s fashion retail sector is heading into another difficult year after dozens of brands shut down in 2025, with industry analysts warning that the wave of closures is likely to accelerate in 2026, according to experts interviewed by Shopper’s on January 8.

At least 25 fashion brands exited the Russian market last year, and major players are now expected to move faster in trimming their store networks.

“The mood in the fashion market is pessimistic, and 2026 will be a year of survival,” said Dmitry Tomilin, CEO of Eterna. He added that consumers are continuing to cut back spending and shift toward “maximum rational consumption,” leaving apparel retailers with virtually no financial cushion.

Store closures gathered pace throughout 2025. In the second quarter, brands including Mellow, Incity, Deseo, Just Clothes, and Ready! Steady! Go! (a Gloria Jeans clothing label) shut down outlets.

The third quarter saw the exit of Inspire Girls, Etam, Yollo, Prav.da, and Mudo, while Face Code, Urban Vibes (owned by Sportmaster), Mollis, and Luzeen closed in the final months of the year, said Evgeniya Hakberdieva, regional director of retail real estate at NF Group.

Additional shutdowns during the year included Megatop, 16 SNKR, Melcloth, and TRND, according to Yulia Kuznetsova, head of retail real estate at Nikoliers.

The contraction has also hit children’s fashion. Stores operated by Loloclo and Orby have closed, while children’s retailer Pelican plans to shut all remaining locations.

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On December 28, two more brands—Pinkpunk and Cosareve, which had operated for 27 years—announced their exit. The young premium label “Krolik chto-to znaet” has also nearly wound down operations, with its final boutique set to close on January 15, 2026.

In total, an estimated 400 to 500 fashion retail stores closed across Russia last year, said Evgeny Domashenko, director of the tenant representation division at CORE.XP.

He warned that shopping mall vacancy rates are likely to continue rising, potentially increasing from 7.7 percent to 9.7 percent over the course of a year, alongside mounting pressure on rental prices. Companies, he said, are shutting unprofitable or low-margin locations and will aggressively push mall owners for rent reductions.

The downturn follows a brief surge that began in 2022, when the exit of international brands created what analysts described as a “window of opportunity” for domestic and emerging labels.

Large retail spaces suddenly became available, fueling rapid expansion, particularly among younger brands. That phase, however, is now giving way to a market correction, Domashenko said. Brands launched in 2022–2023—such as Yollo, Just Clothes, and Noun—failed to reach operational break-even within the typical two- to three-year cycle, Kuznetsova added.

Foreign brands are also becoming increasingly reluctant to enter the Russian market. According to a 2025 review by consulting firm IBC Realty, many of the roughly 60 international brands that entered Russia in 2023–2024 have since decided to leave.

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Last year, only 12 foreign brands entered the country—about half the number seen in each of the previous two years. Among those that fully exited are major Turkish fashion retailers AC& Co and Mudo, both of which entered the Russian market in 2023. “They were deeply disappointed by demand and left because they saw no reason to invest long term and endure losses,” said a retail real estate consultant who worked with Mudo.

Analysts attribute the retreat of foreign brands to Russia’s slowing economy and intensifying competition in an increasingly constrained consumer market.

Earlier, reports emerged that Russia wanted Indian manufacturers to dramatically expand exports to the Russian market, said Deputy Chief of Staff Maksim Oreshkin, who was accompanying a Russian leader during a visit to New Delhi.

“The Russian delegation and business community came here with a very specific goal. Namely, we came for Indian goods,” Oreshkin said.

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