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Only Five Foreign Brands Entered Russia in Nine Months—Seven Walked Out
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The number of new foreign brands entering Russia fell by more than half in the first nine months of 2026, as weak consumer demand, higher taxes, economic uncertainty, and payment and logistics problems made the market less attractive, The Moscow Times reported on October 20.
Between January and September, five new foreign brands entered the Russian market, compared with 11 during the same period in 2025, according to NF Group data cited by the Russian state media outlet. CORE.XP separately recorded six new foreign brands since the start of the year.
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The figures were well below earlier expectations. Nikoliers had forecast that 20 new foreign brands would enter Russia during 2026, which would have represented a 33% annual increase.
Analysts cited by The Moscow Times attributed the slowdown to a growing tax burden, weaker consumer activity, economic uncertainty, and continued difficulties with logistics and payments.
Brands from Türkey, China, the CIS, and the Middle East had until recently retained the strongest potential for entering the Russian market, according to CMWP retail real estate head Zulfiya Shilyaeva.
Domestic brand expansion has also weakened sharply. Only one new Russian brand has entered the market since the start of 2026, compared with seven during the same period last year.
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IBC Real Estate research head Ekaterina Nogai linked the decline to lower shopping-center traffic and more cautious consumer behavior.
Focus Technologies data showed that the Mall Index, which measures visitors per 1,000 square meters of retail space, fell 2% year-on-year in the first half of 2026. Sales at traditional shopping malls dropped 20% over the same period.
The difficult environment is also affecting brands already operating in Russia. Seven foreign brands have left the Russian market since the beginning of 2026, matching the total number that exited during all of 2025, The Moscow Times reported.
Even major retailers are being forced to rethink their business models, close or optimize unprofitable stores, and focus more heavily on online sales, Nogai noted.
In the first half of 2026, optimization measures affected 39 brands, according to figures cited by The Moscow Times.
Russia’s weakening retail environment comes as pressure on the federal budget is also intensifying. On October 18, Ukraine’s Foreign Intelligence Service reported that Russia’s budget deficit had reached $61.08 billion in the first nine months of 2026, already 37% above the Kremlin’s original full-year target, while oil and gas revenues fell 17.2%.
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