Azernews.Az

by Alimat Aliyeva

A number of Turkish brands that entered or expanded their presence in the Russian market after 2022 are now reducing their operations or closing stores altogether.

At least ten Turkish brands are reportedly scaling back their businesses in Russia. Among them are Madame Coco, Chakra, NetWork, OXXO, Beymen Club, Karaca Home and Les Benjamins. The Mudo, Ipekyol and Twist brands have already ceased operations in the country, with the latter two having remained on the Russian market for only about a year.

After the departure of numerous Western companies following the start of the conflict in Ukraine, many Turkish retailers saw Russia as an attractive opportunity for expansion. In 2022, around 32 Turkish brands were operating in the country, with a combined network of approximately 655 stores.

However, market conditions have changed significantly. Experts point to several reasons for the retreat of Turkish retailers, including rising rental and operating costs, weaker consumer traffic, growing competition from online marketplaces and cheaper Chinese-made products, as well as limited brand recognition among Russian consumers.

The pressure on traditional retail is also reflected in shopping-centre statistics. In the first half of 2026, visitor traffic at Russian shopping centres fell by around 2%, while the number of customers visiting clothing and footwear stores declined by 5%. Meanwhile, the net loss of Marka Rus, which manages several Turkish brands, increased by 22% in 2025, reaching $8.5 million.

Not all Turkish companies are facing the same difficulties. Brands that have been present in Russia for many years, including LC Waikiki, Koton and Colin’s, continue to operate and maintain relatively stable positions. Their stronger brand recognition and established customer base give them an advantage over newer market entrants.

The growing popularity of online shopping is another important factor behind the changes. Large marketplaces allow consumers to compare prices and choose from thousands of products without visiting a shopping centre, putting additional pressure on traditional fashion retailers.

Analysts expect the process of optimizing retail space to continue. The share of vacant retail space in Moscow shopping centres could rise to around 8% by the end of 2026 if consumer demand remains weak.

The situation highlights an interesting shift in the Russian retail market: the departure of Western brands initially created a window of opportunity for Turkish companies, but filling that gap has proved more difficult than expected. Competition from Chinese manufacturers and online marketplaces is now reshaping the market once again.