Major Russian clothing retailer closes 62 stores after Western brands exit market

Founded in 2003, O’STIN has focused from the outset on selling clothing and footwear for low-income consumers. According to the retailer, in 2024 its network included 700 stores in Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus. INFOLine estimated the company’s share of the Russian fashion market at 2.1%, placing it fifth. By the end of 2025, revenue of OOO O’STIN under Russian accounting standards fell 13% year over year to 49.9 billion rubles, while net profit declined 1.6 times to 887.4 million rubles.

Last year was “quite difficult” for the clothing and footwear segment: retail turnover of chains fell by 7-10%, said Zulfia Shilyaeva, head of retail real estate at CMWP. As a result, according to NF Group representative Evgenia Khakberdieva, 28 brands announced their exit from the market, 23 of them Russian. According to the Russian Council of Shopping Centers, the share of space occupied by clothing and footwear stores decreased by 10-15% by the end of last year.

According to Platform OFD, in 2025 Russians reduced purchases of clothing and footwear in stores by 11% compared with the previous year. Sales are declining as consumers cut spending, update their wardrobes less often, choose more versatile items and take a more cautious approach to nonessential purchases, said Fashion Consulting Group CEO Anna Lebsak-Kleimans.

Seeking to save money, Russians have increasingly turned to marketplaces to buy clothing and footwear.

Earlier it was reported that Russia’s oil and gas revenues in 2025 fell to their lowest level since the coronavirus pandemic.

Russia’s budget could face a significant deficit as early as the beginning of 2026 due to shortfalls in oil and gas revenues, government officials acknowledged.

Ukrainian intelligence said the financial condition of medium and large Russian enterprises continued to deteriorate, showing growing imbalances in the corporate sector.

More than half of large companies in Russia ended 2025 with declining profits, cut or fully froze investment projects, and many are preparing layoffs.

On Feb. 24, 2026, it was reported that about 300 companies in Russia are preparing to shut down.

For the first time in history, 74 Russian regions have fallen into a fiscal deficit.

A wave of mass business closures has begun in Russia.

Russia’s Finance Ministry acknowledged that the budget gap is widening at a record pace.

Rosstat said more than 17,000 Russian enterprises reported losses.