It has become unprofitable to open pet stores in Russia

The reason for the unpopularity of this retail segment is the shortage of specialized feeds imported from abroad. They allowed retailers to receive up to 80% of income from working with pet owners.

As the Kommersant newspaper notes, referring to consultants from Focus Technologies, the number of buyers in the capital's pet stores decreased by 25% in April and May. Other regions of the country also felt the drop in demand. In part, it may be due to the increase in sales in March, caused by panic moods and the desire of the population to "tighten their belts".

Another possible reason is a commodity shortage.

Experts note that many feed producers in Europe have begun to refuse to cooperate with retailers in Russia. For a number of German enterprises, such work is associated with a threat to reputation.

The problem of cross-border transportation of goods has also become acute. Tariffs for the transportation of products per truck from EU countries to Russia increased from €3.2 thousand to €11 thousand. This inevitably leads to a twofold increase in feed prices for the final consumer.

According to NielsenIQ, over the past few years, Russians have been actively getting pets. Psychologically, the pandemic and forced isolation contributed to this. As a result, by 2022, about 70% of Russian residents kept pets.

At the same time, animal feed grew last year, increasing by 11.9%.

The situation changed after February 24. In the context of the geopolitical crisis, many citizens lost their jobs or reduced their expenses. In these conditions, retail has to switch to the formation of its own brands, change the formats of work and optimize costs. Experts attribute the unwillingness of businesses to open new stores to a shortage of working capital and inaccessibility for most bank loans at greatly increased rates.