Russian grocery chain VkusVill plans to close approximately 26 of its stores in Moscow and St. Petersburg by the end of March, a company spokesperson confirmed Tuesday. The closures represent a strategic realignment toward bolstering the company’s online delivery services, according to the statement.
The affected locations will primarily be smaller format stores, the spokesperson said, adding that employees will be offered positions within the company’s expanding logistics and fulfillment network. VkusVill currently operates over 430 stores across Russia, primarily concentrated in Moscow and St. Petersburg, and has become known for its focus on organic and locally sourced produce.
The move comes as Russia’s retail landscape continues to evolve following the withdrawal of numerous Western companies after February 2022. While VkusVill is a domestic company, it has faced increased competition from retailers filling the void left by international departures. According to a report by the Russian Federal State Statistics Service (Rosstat) released in February 2024, online retail sales in Russia increased by 26.5% in 2023, indicating a growing consumer preference for e-commerce.
“We are seeing a significant shift in consumer behavior, with more customers opting for the convenience of home delivery,” the spokesperson stated. “This restructuring will allow us to invest further in our digital infrastructure and optimize our store network to better serve our customers.”
Industry analysts note that VkusVill’s decision aligns with a broader trend among grocery retailers globally, but is particularly pronounced in Russia due to logistical challenges and the increasing popularity of delivery services. A February 2024 report from research firm NielsenIQ Russia highlighted the growth of quick commerce services – delivering groceries in under an hour – as a key driver of change in the market.
The company has not disclosed the financial terms of the restructuring, but indicated that it anticipates a short-term impact on revenue as it transitions its operations. VkusVill’s founder and CEO, Ivan Shestakov, has previously emphasized the importance of maintaining profitability while expanding the company’s reach.
The closures are expected to be completed by March 31st, with the company planning to announce further details regarding its online expansion plans in April. VkusVill’s press office has not yet responded to requests for a list of the specific stores slated for closure.
