The regional discount store chain “Pravda!” started closing stores

In the comments on the network’s Telegram channel it is reported that the point in Togliatti is closing. Six stores closed in Saratov and will continue to operate in other cities, an employee of the company’s hotline told the publication. The management company did not respond to the request.

Red Pravda is part of the same group as Ruble Boom, whose business from the end of 2023 to the end of summer 2024 decreased by one and a half times. These are not the first discounters to face difficulties. In July, the trade publication Shopper’s reported on the closure of the Pyzhikoff chain, which had existed for about a year.

Infoline-Analytics CEO Mikhail Burmistrov attributes discounters’ problems to the flow of demand to markets, where prices for non-food products are often lower than in traditional stores. According to NielsenIQ, during the 12 months to August 2024, the share of online sales of laundry products grew from 19.6% to 26.5%, and of hair care products from 27.7% to 34. .2%.

Petr Bobrovsky, executive director of the Association of Manufacturers of Perfumery, Cosmetics and Household Chemicals, added that online sales of household chemicals received a boost in 2022, when foreign manufacturers reduced their offline assortment and began liquidating their balances in the markets.

The Ruble Boom and Pravda chains are managed by TD Abbat LLC. According to Rusprofile, in 2023 the company’s revenue decreased by 10% to 6.2 million rubles, the net loss amounted to 580 thousand rubles.