Russia’s biggest supermarket chain posts first loss in 20 years
Russian leader Vladimir Putin and Russian military personnel (Photo: Getty Images)
Russian retail giant Magnit has officially reported a financial collapse based on the results of 2025.
The financial statements of the group's main operating company, JSC Tander (which manages the Magnit and Magnit Cosmetic chains), shocked the market: a net loss of 22.5 billion rubles. This is the first negative result in the entire history of the chain, which has over 32,000 outlets.
Why did the giant sink?
Although the chain's revenue formally increased by 11% (to 3.1 trillion rubles), the company found itself in a perfect storm of economic problems:
- The credit noose: The main enemy of the business became the record key interest rate of the Russian central bank. Interest expenses soared by 74%, eating up all real profit.
- Penny‑pinching: Russians massively switched to a strict saving mode, choosing only the cheapest products. To avoid losing customers, the chain was forced to keep prices low, which drove its profitability down to a historic low.
Not only Magnit
The financial collapse of the largest retailer is not an accident but a diagnosis for the entire Russian economy. High interest rates have already led to losses for giants such as Lukoil, Severstal, and Rusal.
Experts note: when even food retailers become unprofitable, it signals a deep systemic crisis that can no longer be hidden behind impressive revenue figures.
