In November 2024, the retail market in Russia continues to undergo significant changes, which are caused by the rapid growth of e-commerce and the changing consumer behavior.
Traditional hypermarkets, which used to dominate the sector, are now facing many problems while online shopping is reshaping the landscape.
The growth of the e-commerce boom shows no signs of slowing down. By 2024, online platforms will increase their market share in Russia, driven by the improvement of digital products and consumer confidence in online shopping.
Major players such as Wildberries and Ozon have capitalized on this, adapting their offerings and improving delivery capabilities to meet a growing customer base.
Experts attribute the continued growth to lifestyle changes and the convenience of online shopping. “Russians value time-saving methods more than ever, and e-commerce provides exactly that,” says business analyst Elena Sokolova.
The introduction of new technologies, such as AI-driven customization and faster same-day shipping options, have also strengthened e-commerce’s position in the market.
Meanwhile, hypermarkets are struggling with declining traffic and lower sales. The traditional model of supermarkets no longer fits the needs of consumers.
Urbanization and the increasing number of households in one population have created a need for smaller and more convenient purchases.
Retailers have been experimenting with ways to offset this decline, such as expanding cut-and-collect services and offering in-store experiences that can’t be matched online. Despite these efforts, hypermarkets struggle to adapt to the flexibility and efficiency of e-commerce platforms.
Alexander Ivanov, CEO of a leading retail company, says, “Squirrels need to change quickly. The retail environment is changing, and slow movers are at risk of becoming obsolete.”
Demographic and cultural changes are contributing significantly to the transformation of the Russian retail industry. The rise in the number of independent residents has led to a demand for smaller units and similar offers.
In addition, sustainability-conscious consumers are looking for more environmentally friendly options, which is forcing retailers to change their product lines.
Online platforms have become very adept at meeting these requirements, using data to identify and predict trends. Meanwhile, hypermarkets are trying to innovate by introducing local produce sections and offering a wide variety of products to attract consumers.
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