Russians are Cutting Back on Shopping

Russians are Cutting Back on Shopping

Photo: https://incrussia.ru/

According to RBC, in August of this year, when many retailers held traditional sales, Russians had to tighten their belts and save on the purchase of clothing, shoes and household appliances.

Even large discounts did not help. Consumers continue to buy more food.

RBC asked the OFD Platform, where the accounting of 1.1 million online cash is registered across the country, to conduct the Check index study. It was found out that starting in spring, Russians began to buy shoes and clothing much less often. Analysts of the OFD Platform came to the conclusion that at the beginning of the year there was indeed a rush demand for these types of goods. However, in April and May, if you count in pieces, purchases decreased on average by a quarter compared to the same period in 2021. In the summer months, this segment began to recover. Analysts believe that it was during this time that niches freed after a number of European brands left the domestic market, began to be filled by other brands. However, in general, compared with the same period last year, the volume of purchases decreased, although more money had to be spent on their purchase.

According to data from the OFD Platform, there was no growth in sales in the electronics and home appliances sector in the summer of this year. In the first summer month, as reported by RBC, sales dropped by 11%, and in volume terms, by as much as 15%. The average bill was a little over 10,500 rubles ($182.4,) which is 1% less than during the same period in 2021. In July, there was an 18% drop in sales of home appliances and electronics, while customers were able to buy 15% less goods. At the same time, the average purchase receipt fell as well, which amounted to only 9,900 rubles ($171.97), which is 11% less than during the same period a year earlier.

In August, domestic consumers bought fewer shoes and clothes, as well as reduced the purchase of household appliances and electronics but the Russians went shopping to food retail chains much more often.

Meanwhile, the Central Bank of Russia reported on September 16 that its key rate had been reduced from 8% to 7.5%. As for the consumer activity of Russians, it remains “restrained.” According to the regulator, it was caused by several reasons, including a decrease in real incomes of Russian citizens, as well as propensity of Russians to economize. As reported by the media, the Central Bank experts explain this trend not only with the uncertainty in the economy, but also with the reduction in the supply of certain types of goods and services, which were previously available to Russians.

At the same time, according to the CEO of Fashion Consulting Group Anna Lebsack-Kleimans, not only income, but also “the mood of the people” strongly affects the fashion market, and this fact should be taken into account.

For his part, Mikhail Burgomistrov, INFOLine-Analytics CEO, believes that consumers are currently in “a mode of severe austerity.” At the same time, people visit stores, look for discounts and sharply reduce their spending on nonfoods. He also draws attention to the fact that people are going to restaurants less and this has led to an increase in food shopping. The emotional part of human nature also plays its role in this. According to Burgomistrov, it is typical for people to simply eat their feelings in stressful situations.

As noted by experts, only in the Verny retail chain store, sales increased in monetary terms by 20% in July - August, compared with the corresponding period of the previous year.

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