Russians are spending more cautiously, delaying large purchases or paying for them in installments, searching more often for discounts, choosing cheaper goods and buying more on online marketplaces. The Bank of Russia's July report "Regional Economy: Comments from Main Directorates" and market participants described the shift.
Overall consumer activity is still rising. Russia's Ministry of Economic Development said it grew 4.8% year on year in the first half of the year. But grocery chains in Primorsky Krai and Novosibirsk Region reported fewer items per receipt, while a retailer in Oryol Region supported sales through themed promotions, weekend discounts on select items and expanded delivery.
Non-food retail hit hardest
Savings were most visible in non-food retail. Demand stayed subdued in January-May for clothing, footwear, household chemicals, furniture and home improvement goods, with buyers increasingly choosing single items instead of full sets, cheaper models, and secondhand goods. Electronics retailer M.Video said installment-payment orders rose by a third in the first half of the year.
The shift online is pressuring traditional retail. In the second quarter, a perfume and cosmetics chain in the Volga-Vyatka macroregion closed nearly 15% of its stores due to falling foot traffic and demand moving online. A furniture and home-goods seller in Kostroma Region reported sales down 10% from the first quarter and down by half compared with the same period in 2025.
Income growth slows
Experts linked the new spending pattern mainly to slowing income growth, inflation and high borrowing costs. Real disposable incomes rose 1.5% in the second quarter, compared with 10.1% a year earlier, while Central Bank surveys found employers growing more cautious about raising wages.
Rosstat data showed nominal incomes rose about 7% in the first half of the year while consumer spending rose 14%. Freedom Global lead analyst Natalya Milchakova said shrinkflation, where consumers get less product for the same money, adds further strain.
Even while economizing, Russians remain unwilling to significantly cut spending on basic goods and services, said Maria Yermilova, associate professor at the Plekhanov Russian University of Economics, listing essentials, medicine, medical services, children's goods, education, utilities, fuel and communications. The Bank of Russia said most companies do not expect demand to grow in the second half of the year compared with the first.
