Discussion of Technological Advancement Opportunities Held During Russia Retail Week
The 11th International Business and Power Forum "Russian Retail Week - 2025" in Moscow brought together industry experts to discuss the current state and future trends of technology adoption in the Russian retail sector.
Key points from the forum included:
Robust Growth of Russian E-commerce
Online retail sales in Russia reached an impressive 10.7 trillion rubles in 2024, marking a 36% year-over-year increase. The compound annual growth rate is forecasted at about 11% from 2024 to 2029, positioning Russia as one of the fastest-growing e-commerce markets globally. Most purchases (97%) are made via domestic platforms such as Ozon and Wildberries, indicating a largely closed ecosystem with adapted local consumer behaviors in discovery, payment, and trust.
AI-Powered Personalization and Operational Efficiency
Retailers are increasingly leveraging AI technologies, particularly Customer Data Platforms (CDPs) combined with generative AI, to deliver hyper-targeted marketing, customized product recommendations, and inventory optimization. This results in better customer engagement and improved sales metrics like cart abandonment rates and repeat purchases. Seamless and secure checkout experiences are being enhanced by biometric scans and mobile and AI-enabled fraud detection systems.
Unified Commerce and Omnichannel Insights
Russian retailers are moving towards integrated platforms that unify app, in-store, and online sales, providing real-time insights into customer buying behavior across channels. This enables agile merchandise planning and trend spotting, crucial for competitiveness.
Regulatory Impact on Payment Technologies
The 2025 comprehensive crypto regulations prohibit the use of cryptocurrencies in retail transactions, steering the market towards a state-backed digital ruble expected by 2026. This shift aims to centralize control over digital payments and reduce informal economic activities, signalling a move away from decentralized crypto assets towards government-regulated digital currencies.
AI-Driven Supply Chain Transformation
AI and machine learning technologies are anticipated to revolutionize retail supply chains in Russia by enhancing efficiency and responsiveness to fast-changing demand cycles. However, detailed local implementations are still emerging.
Thinking Ahead in Retail
The main challenge in retail, according to Rustam Zakirov, is not just automating processes for today, but thinking ahead 3-5 years. Albert Gusev, from SPAR, aims to maintain the traditional supermarket format while improving it with new solutions, using innovations to increase efficiency, make the customer journey more convenient, and redirect resources. Nikita Kuznetsov, from the Ministry of Industry and Trade, supports the development of innovations that automate stores and warehouses, reduce the number of employees, and maintain efficiency. The key focus in 2025 is the development and application of robots on an industrial scale.
Sber's Technological Transformation
Alexander Belokopytov, from Sber, mentioned that the company is primarily transforming internally with GenAI technologies, aiming to increase efficiency and competitiveness. Sber is also developing technologies and implementing modern solutions based on GenAI to help partners develop their business and free up resources for tasks that require human involvement. Sber aims to keep up with the current technological agenda and stay ahead in the competitive retail landscape.
These trends suggest a technology-forward retail landscape focused on agility, localization, and regulatory compliance in Russia. The forum provided valuable insights into the challenges and opportunities that lie ahead for the retail sector in the coming years.
[1] Source: https://www.statista.com/statistics/1071567/online-retail-sales-in-russia/ [2] Source: https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/05/the-future-of-retail-in-russia-is-already-here/?sh=18f843d7110b [3] Source: https://www.rbc.ru/business/27/05/2021/5ec6d4509a79472d50b32984 [4] Source: https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/05/the-future-of-retail-in-russia-is-already-here/?sh=18f843d7110b
Technology adoption is crucial for Russian retailers, particularly in areas like e-commerce, AI-powered personalization, unified commerce, supply chain transformation, and payment technologies. The schools of thought at the forum emphasized the importance of thinking ahead and adopting cutting-edge technologies to remain competitive in the Russian retail sector.
