Russian consumers are increasingly switching to cheaper food products as real incomes come under pressure and households look to cut costs, a senior executive at the country\u2019s largest food retailer said.<\/p>\n
Yekaterina Lobacheva, president of X5 Group, which operates the Perekrestok, Pyaterochka and Chizhik chains, said the company had observed a sharp rise in demand for low-cost items and store-brand products.<\/p>\n
The trend underscores a cooling in consumer demand in Russia\u2019s slowing economy, where high interest rates and persistent inflation concerns are weighing on household spending, even as officials say price growth is easing.<\/p>\n
\u201cWe recently noticed that cookie consumption has risen \u2014 almost two and a half times,\u201d Lobacheva told<\/a>\u00a0the RBC news website in an interview. \u201cIt\u2019s something sweet, a small indulgence, but cheaper than chocolate and other confectionery.\u201d<\/p>\n Sales of X5\u2019s own-brand products, which are typically priced below those of third-party manufacturers, have also increased notably, she said.<\/p>\n Another sign of tightening household budgets is rapid growth in discount retail formats that are traditionally aimed at lower-income shoppers.<\/p>\n Lobacheva said X5\u2019s hard-discount chain Chizhik is expected to overtake Pyaterochka in revenue for the first time this year.<\/p>\n Pyaterochka reported revenue of 531 billion rubles ($7.06 billion) in 2025, up 8% year-on-year, while Chizhik\u2019s revenue jumped 67% to 417 billion rubles ($5.55 billion).<\/p>\n Lobacheva said X5 does not segment customers into \u201crich\u201d and \u201cpoor,\u201d adding that retailers benefit when shoppers buy across a wide range of categories, including children\u2019s goods, pet products and alcohol.<\/p>\n She also pointed to intensifying competition among retailers for a shrinking pool of consumers, as Russia\u2019s population declines.<\/p>\n \u201cOne customer may visit up to 12 different stores over the course of a year,\u201d she said, citing competition between retail chains, independent shops, markets and online platforms.<\/p>\n Household purchasing power is being squeezed by a combination of demographic decline, high interest rates set by the Central Bank and a prolonged effort to curb inflation, Lobacheva said.<\/p>\n At the same time, she added that food inflation has been \u201cbrought under control\u201d and is currently at relatively low levels.<\/p>\n Central Bank Governor Elvira Nabiullina said in March that consumer demand was cooling.<\/p>\n According to state statistics agency Rosstat, real income growth slowed to 7.4% in 2025 from 8.2% a year earlier, with growth easing to 5.8% in the fourth quarter.<\/p>\n Other indicators point to rising caution among consumers. Russians have begun cutting spending not only on food<\/a> but also on medicines<\/a>, clothing and footwear<\/a>, according to a survey by research group CSP Platform and analytics firm OnIn.<\/p>\n The poll found that 82% of respondents are concerned about the economic situation and expect prices for food and utilities to rise faster than incomes over the coming year.<\/p>\n