Goods are disappearing from stores in Russia_ Food crisis is intensifying

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Russian stores have reduced their assortment: in July, food products decreased by 2.3%, and non-food products by 1.8% compared to the same month last year.
The largest declines were recorded in the segments of alcoholic beverages, children’s goods, and personal care products – by 5.6%, 5.1%, and 7.3%, respectively, writes The Moscow Times.
X5 Groupreported that since the beginning of the war against Ukraine, the range of products in their stores has decreased by an average of 15-20%.
While the move is seen as a necessary step to curb inflation, economists warn that the consequences may mirror the failures of Soviet-era central planning.
"Russia is now shifting toward a fully planned, command-style system, with all its usual flaws — constant food shortages, long queues, and everything else that comes with it," said Igor Lipsits, a Russian-born economist.
"That's what lies ahead for Russians, and it's becoming quite clear."
Lenta also confirmed its course for reduction and optimization: only the most popular products are left on the shelves, and the vacated space is given over to services and sublease. In addition, the chain's new hypermarkets are much smaller than those the company opened before.
According to Infoline's calculations, from January to July the average area of grocery stores decreased by 0.7%, to 312 m². "Retailers have now reached the point where they can draw conclusions about the success of previously launched brands, and in conditions of limited shelf space, they are removing those that are not popular with customers," notes Saltanat Nysanova, Director of Customer Service at Nielsen.
The hypermarket format is giving way to compact convenience stores and outlets with a high share of prepared food, says Olga Sumishevskaya, a partner at the consulting company One Story. According to her, most often in such stores one need is satisfied by one item, which allows them to abandon less popular goods.