Industry boss says Russian home appliance market is struggling
With rising bank deposit rates, consumers are increasingly prioritizing saving over spending, according to the head of retailer DNS. Russia's home appliance and electronics sector is experiencing its steepest decline in decades as shoppers...
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With rising bank deposit rates, consumers are increasingly prioritizing saving over spending, according to the head of retailer DNS.
Russia's home appliance and electronics sector is experiencing its steepest decline in decades as shoppers opt to save funds rather than make purchases, as noted by Dmitry Alekseev, the leader of major retail chain DNS. In a statement made on Telegram on Thursday, he remarked that the current state of the market is unprecedented in his 30 years within the industry. Preliminary figures indicate that first-quarter sales may have fallen by approximately 15%, he reported.
“We’ve seen the market dropping in units, we’ve seen it fall in dollars or in real rubles adjusted for inflation,” Alekseev wrote. “But I don’t recall a time when it was simply falling in rubles – not like this.”
He pointed out that the retail sector is losing ground to banks, as high interest rates are incentivizing Russians to deposit their cash instead of spending it on large purchases.
Traditionally, about 30% of sales in this market segment involved credit purchases, but Alekseev highlighted that this figure has now plummeted to under 5%, driven by increasingly restricted access to loans.
Recent statistics reveal that consumer lending in Russia decreased by 21% in 2024 compared to the previous year as banks tightened their lending standards. The stricter regulations imposed by the central bank—such as lending caps designed to limit household debt—were a significant factor in this decline observed in late 2024 and early 2025.
Alekseev further indicated that the reduction in consumer demand is influenced not only by rising prices and the transition to online marketplaces, but also by a clear choice available to consumers. “Consumers now have a clear alternative – they can either spend the money or put it in the bank and earn 2% a month,” he stated.
DNS, founded in 1998, is a prominent Russian retail chain that specializes in electronics and home appliances while also producing goods under several proprietary brands. The company boasts more than 2,000 stores throughout Russia and has a presence in several CIS nations.
Anna Muller for TROIB News
Russia's home appliance and electronics sector is experiencing its steepest decline in decades as shoppers opt to save funds rather than make purchases, as noted by Dmitry Alekseev, the leader of major retail chain DNS. In a statement made on Telegram on Thursday, he remarked that the current state of the market is unprecedented in his 30 years within the industry. Preliminary figures indicate that first-quarter sales may have fallen by approximately 15%, he reported.
“We’ve seen the market dropping in units, we’ve seen it fall in dollars or in real rubles adjusted for inflation,” Alekseev wrote. “But I don’t recall a time when it was simply falling in rubles – not like this.”
He pointed out that the retail sector is losing ground to banks, as high interest rates are incentivizing Russians to deposit their cash instead of spending it on large purchases.
Traditionally, about 30% of sales in this market segment involved credit purchases, but Alekseev highlighted that this figure has now plummeted to under 5%, driven by increasingly restricted access to loans.
Recent statistics reveal that consumer lending in Russia decreased by 21% in 2024 compared to the previous year as banks tightened their lending standards. The stricter regulations imposed by the central bank—such as lending caps designed to limit household debt—were a significant factor in this decline observed in late 2024 and early 2025.
Alekseev further indicated that the reduction in consumer demand is influenced not only by rising prices and the transition to online marketplaces, but also by a clear choice available to consumers. “Consumers now have a clear alternative – they can either spend the money or put it in the bank and earn 2% a month,” he stated.
DNS, founded in 1998, is a prominent Russian retail chain that specializes in electronics and home appliances while also producing goods under several proprietary brands. The company boasts more than 2,000 stores throughout Russia and has a presence in several CIS nations.
Anna Muller for TROIB News
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