Russia sees boom in low-cost 'stores for poor' as their numbers rise sharply
A shop in occupied Crimea (Photo: Getty Images)
In Russia, the purchasing power of the population is declining significantly, causing Russians to increasingly choose so-called stores for the poor, according to the press service of the Foreign Intelligence Service of Ukraine.
These are discount stores – shops that offer goods at prices significantly below the market average. The number of such retail outlets has increased by 26.4% over the year, intelligence data confirms.
In addition, the number of retail outlets also increased by 5.8%.
"At the same time, their revenue increased by 67.3%, indicating a sharp rise in demand specifically for cheap goods and the economy segment," the Foreign Intelligence Service reported.
The popularity of so-called stores for the poor is directly linked to economic difficulties and cautious consumer behavior. Russians are increasingly abandoning more expensive formats in favor of affordable alternatives, prioritizing price.
At the same time, traditional supermarkets and corner stores are showing moderate contraction and restructuring and are no longer the main drivers of the market.
Russia's budget deficit has exceeded the annual plan and reached about $70 billion — almost twice the previous estimate of the Russian Ministry of Finance.
Recently, Kremlin head Vladimir Putin summoned Russia's top economists and expressed outrage that economic expectations do not match the results.
Putin also instructed the government to draft an action plan to revive the economy, as Russia's gross domestic product (GDP) contracted by 1.8% in January–February.
