Russian Retail Before, during and after the COVI-19 Crisis

Abstract

In this paper, we study the impact of the crisis caused by the COVID-19 pandemic on the retail sector in Russia. The study is based on a series of interviews with representatives of the sector and macro industry statistics. The crisis has exacerbated the problems that have long been observed in the sector and accelerated its transformation, including the formation of new formats of retail and business models. We show that the greatest changes occurred in the food segment, which was less affected by the lockdowns and could adapt to new conditions faster. The ongoing changes have exposed the lagging regulation in the industry, demonstrated a high dependence on consumer sentiments and business sensitivity to regional conditions, the blurring of retail boundaries associated with the entry of companies from related industries (e.g. IT sector, banks) into the industry, as well as the ongoing digital transformation of the industry. The sector's development prospects will be largely determined by the need to find conceptually new approaches to trade regulation, the availability of digital technologies and human capital to transform the industry.