Survey Reveals Structural Transformation of Russian Pet Retail Amid Store Closures

A recent industry survey conducted in our Telegram channel PROZoobiznes: ZOOINFORM highlights a growing trend of offline store closures, signaling a profound shift in Russia’s pet retail landscape. While consumer demand remains resilient, the physical retail environment is facing significant pressure from macroeconomic factors and the rise of digital commerce.

The survey results paint a sobering picture of the brick-and-mortar sector. Approximately 53% of respondents reported a clear trend toward the contraction of physical retail locations. Specifically, 21% noted that «many stores are closing,» 16% observed a noticeable increase in closures over the past year, and another 16% described the current offline situation as «alarming.» While 15% of participants suggested that closures are primarily affecting weak or independent stores, 10% viewed the trend as a systemic reduction of the offline pet retail footprint.

Resilience of the Pet Category

In contrast to the struggles of physical stores, the pet goods category continues to outperform the broader fast-moving consumer goods (FMCG) market. In 2025, pet product sales grew by 15.7% in value and 6% in volume. For comparison, the overall FMCG market grew by 14.2% in value and only 2.5% in volume. According to data from ROMIR, pet supplies have become a staple of the Russian consumer basket, with owners reluctant to cut spending in this area despite broader economic optimization.

This stability is supported by a steady increase in the pet population. Between 2020 and 2023, the number of pets in Russia grew by 11% to nearly 75 million, including 49.2 million cats and 25.5 million dogs. This demographic base provides a long-term foundation for demand, though the nature of market competition is evolving. The focus is shifting from price-based competition to a battle for customer loyalty, high-quality service, and expert engagement.

Macroeconomic Pressures and Business Sentiment

The resilience of consumer demand stands in stark contrast to a deteriorating business environment. 2025 marked a record year for corporate liquidations in Russia, with 233,000 legal entities closed while only 173,000 new ones were registered—a 26% gap. Rising costs, expensive credit, and a 2025 inflation rate of 5.59% have created a challenging backdrop for retailers.

Investor and operator sentiment remains cautious. Research from B1 and Redis Crew indicates that 44% of retailers expect a decline in profits and profitability for 2026. Only 29% anticipate business growth—the lowest level of optimism recorded in the last decade.

The New Mission for Offline Retail

Experts suggest that the traditional «convenience store» model, which relies solely on product availability, is becoming obsolete. As marketplaces and major retail chains capture the logistical side of the business, small offline stores must find a new purpose.

Alexander Kolchin, content director at Zooinform and a business coach, emphasizes that physical retail must pivot toward a customer-centric model. According to Kolchin, the mission of offline retail is to become a space for expert assistance and human connection. By focusing on personal trust and emotional engagement—elements that digital marketplaces struggle to replicate—physical stores can survive the current market redistribution.

The industry is entering a phase of consolidation where independent, poorly differentiated points of sale will likely continue to struggle. Future growth is expected to be driven by large regional players and national chains capable of investing in omnichannel technologies, loyalty programs, and specialized services.

Source: zooinform.ru, vetandlife.ru