Russian Fashion Retailers Exit Market Amid Demand Drop

The Russian clothing retail sector is undergoing a major correction in 2025. Over the first nine months of the year, several prominent brands have ceased their operations within the country. This market exit is attributed to a combination of reduced consumer demand, high bank deposit rates diverting funds, and a structural shift toward e-commerce.

Among the brands that have withdrawn are Incity, Deseo, Ready! Steady! Go!, Etam, I Am Studio, Face Code, Just Clothes, and Yollo. Additionally, Modis, Orby, and Loloclo have initiated bankruptcy procedures.

Remaining market participants are maintaining current price points to protect margins, despite a broader slowdown in price growth for apparel and footwear. Experts note that while prices have risen over the last three years, the rate of increase has decelerated significantly in 2025.

The Russian clothing market has seen a significant shakeup during the first three quarters of 2025. Driven by a decline in consumer activity and the migration of buyers to online platforms, several retailers have been forced to restructure or leave the market entirely.

According to market data, the following brands have either left the Russian market or suspended their activities:

• Incity
• Deseo
• Ready! Steady! Go!
• Etam
• I Am Studio
• Face Code
• Just Clothes
• Yollo

In parallel, three other brands have taken more drastic measures to address their financial situations. Modis, Orby, and Loloclo have all initiated their own bankruptcy processes. This wave of exits highlights the intense pressure on brick-and-mortar retail and businesses relying on traditional sales channels.

For the retailers that remain active in the sector, the current economic climate requires careful navigation. The combination of high deposit rates and lower disposable income has squeezed the market. Retailers are currently choosing to hold prices steady rather than risk volume by raising them or hurting profitability by cutting them.

Anton Letushov, Director General of Melon Fashion Group, provided insight into the volatility of the current environment. Speaking in December 2025, he stated, "Уйти (с рынка одежного ритейла.— “Ъ”) могут и крупные бренды, экономика бизнеса у всех разная" (Even large brands may leave, the business economics vary for everyone).

This sentiment reflects the uncertainty facing the industry, where size does not guarantee immunity from the prevailing economic headwinds.

Despite the market exits, pricing trends show a complex picture. Over the past three years, the cost of consumer goods has risen sharply. Experts calculated that footwear prices increased by 59% during this period, while clothing prices rose by 36%.

However, the trend line has begun to flatten in 2025. By the end of the third quarter, the growth rate for these categories has slowed considerably. Year-over-year price increases for clothing and footwear have decelerated to a range of 6–9%. This suggests that while the market is contracting in terms of volume and brand presence, the rapid inflation seen in previous years is beginning to stabilize.