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"VkusVill" Shuts Down Over 10% of Its Outlets Since January 2025

Russian retail network VkusVill shut down approximately 10% of its outlets in Q1 2025, marking the highest closure rate among significant Russian retailers, as reported by Kommersant. Industry experts speculate that VkusVill may be shifting its business approach.

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"VkusVill" Shuts Down Over 10% of Its Outlets Since January 2025

**"VkusVill" Slashes 10.5% of Stores! Ouch, That's Rough"

Hey there! Guess who's shaking things up in the Russian retail game? Our beloved "VkusVill" - they've shut down 238 retail outlets between January and March 2025, according to "Kommersant". That's the highest closure rate among the big guns in Russian retail. They did open over 500 new outlets last year, though, so it's not all gloom and doom.

One smart cookie, One Story partner Olga Sumishhevskaya, reckons "VkusVill" is switching gears to focus more on its online segment, with nearly half of the network's sales coming from online channels. This theory is backed up by the rise in their dark stores - 5.5% year-on-year increase in the first quarter of 2025, reaching 230 units.

Now, let's talk about a few other key players: "Bristol" (-1.5%) and GK "Torgservis" (-2.6%) are also shrinking their store counts, but not for the same reasons. It's not just optimization processes, folks. For example, "Svetofor" temporarily closed some stores due to health inspections, but those have since reopened. Mercury Retail Group, which includes "Bristol", is redirecting resources to grow "Krasnyi & Belyi", with a 2% increase in stores to 403 in three months.

Intriguingly, the total area of FMGG networks in Russia has decreased for the first time in five years at the start of 2025. Even though the number of stores continues to grow, it ended up shrinking, going from 39.62 million sq. m in 2024 to 39.49 million sq. m in January-March 2025.

Beware, other major Russian retailers aren't letting go of their retail space - "Lenta" and "Magnit" are thriving, while Metro is maintaining its business profitability by adding functions like transforming shopping centers into B2B client warehouses.

A fun fact for you - INFOLine discovered that the combined sales of private labels by the top 10 largest retailers of everyday products skyrocketed by a whopping 24% year-on-year, reaching 2.35 trillion rubles. "VkusVill" reigns supreme, with its private label accounting for a staggering 95% of the network's revenue!

So, Why the Dark Stores and Online Shift for "VkusVill"?

  1. Catering to Convenience: In this fast-paced world, the rise of e-commerce has been a game-changer, and "VkusVill" is jumping on the bandwagon to meet consumers' increasing demand for convenience. Dark stores, essentially warehouses optimized for quick and efficient order fulfillment, are the answer to minimizing delivery times and costs.
  2. Ace the Competition: As you may have guessed, being competitive in Russia is no walk in the park. Focusing on e-grocery helps "VkusVill" stand out and attract customers who prefer online shopping, especially since other heavyweights like SberMarket and the X5 Group are already active in the e-grocery market.
  3. Maximize Operational Efficiency: Dark stores are cost-effective because they handle a large volume of orders without the need for customer-facing spaces, cutting down on overall operational costs.

And there you have it, folks! The retail world is heating up, and "VkusVill" is taking the lead by embracing the online shift and dark stores. We'll be keeping our eyes on these trends, so stay tuned for more exciting updates!

  1. Olga Sumishhevskaya, a partner at One Story, posits that "VkusVill" is moving towards prioritizing its online segment, as nearly half of the network's sales come from online channels.
  2. To cope with the increasing demand for convenience in the e-commerce market, "VkusVill" is opening dark stores, which are optimized warehouses for quick and efficient order fulfillment.
  3. By focusing on e-grocery, "VkusVill" aims to stand out from the competition in the Russian retail market, considering other players like SberMarket and the X5 Group are already involved in the online grocery sector.
  4. Dark stores help "VkusVill" maximize operational efficiency by handling a large volume of orders without the need for traditional customer-facing spaces, resulting in reduced overall operational costs.
Major Russian retailer 'Taste of the Vill' shuttered over 10% of its stores during Q1 2025, the steepest decline among leading retailers, as per Kommersant. The apparent adjustment in the company's business strategy is a likely cause, according to experts in the field.

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