06.07.2026, 12:43
A third of clothing sellers in Russia turned out to be unprofitable
Source: OREANDA-NEWS
OREANDA-NEWS By the end of 2025, 34 percent of the mass-market clothing brands represented in Russia turned out to be unprofitable. Vedomosti writes about this with reference to data from the Fashion Consulting Group, which studied the reports of one hundred of the largest representatives of the industry.
At the same time, the situation is even worse for premium brands — 40 percent of retailers were in the red. Back in 2022, the share of loss-making brands for mass and luxury brands was 16 and 22 percent, respectively.
The publication points out that in 2025, for the first time, market leaders such as LLC "Yours" (manages the store chain of the same name), "August" (Oodji brand) and "Seasonal Collection" (retailer Zenden) faced losses.
Alexey Fedorov, head of the Council for the Development of electronic Commerce at the Chamber of Commerce and Industry, said that the profits of mass-market brands decreased by 30-90 percent last year, while the total volume of the clothing, footwear and accessories market decreased by five percent.
Stanislav Nazhmitdinova, co-founder of Fashion Buzz, suggested that in reality the situation could be even worse because some brands decided not to disclose financial figures. Anna Lebsak-Kleimans, CEO of Fashion Consulting Group, explained that the growing share of unprofitable segment companies is associated with increased competition in a declining market, which forces sellers to increase discounts.
Ilya Yaroshenko, President of Baon, believes that this year the number of profitable fashion chains in the Russian market will be reduced to several dozen. Mikhail Burmistrov, CEO of Infoline Analytics, agrees with this opinion, as companies will have to pay more to employees for rent, as well as incur costs when selling through marketplaces.
Earlier it was reported that all stores of the Turkish clothing brand Mudo were closed in Russia in 2025, and the Oxxo, Club and NetWork brands intend to leave the country in 2026.
At the same time, the situation is even worse for premium brands — 40 percent of retailers were in the red. Back in 2022, the share of loss-making brands for mass and luxury brands was 16 and 22 percent, respectively.
The publication points out that in 2025, for the first time, market leaders such as LLC "Yours" (manages the store chain of the same name), "August" (Oodji brand) and "Seasonal Collection" (retailer Zenden) faced losses.
Alexey Fedorov, head of the Council for the Development of electronic Commerce at the Chamber of Commerce and Industry, said that the profits of mass-market brands decreased by 30-90 percent last year, while the total volume of the clothing, footwear and accessories market decreased by five percent.
Stanislav Nazhmitdinova, co-founder of Fashion Buzz, suggested that in reality the situation could be even worse because some brands decided not to disclose financial figures. Anna Lebsak-Kleimans, CEO of Fashion Consulting Group, explained that the growing share of unprofitable segment companies is associated with increased competition in a declining market, which forces sellers to increase discounts.
Ilya Yaroshenko, President of Baon, believes that this year the number of profitable fashion chains in the Russian market will be reduced to several dozen. Mikhail Burmistrov, CEO of Infoline Analytics, agrees with this opinion, as companies will have to pay more to employees for rent, as well as incur costs when selling through marketplaces.
Earlier it was reported that all stores of the Turkish clothing brand Mudo were closed in Russia in 2025, and the Oxxo, Club and NetWork brands intend to leave the country in 2026.
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