Russian consumers are increasingly switching to cheaper food products as real incomes come under pressure and households look to cut costs, a senior executive at the country’s largest food retailer said.
Yekaterina Lobacheva, president of X5 Group, which operates the Perekrestok, Pyaterochka and Chizhik chains, said the company had observed a sharp rise in demand for low-cost items and store-brand products.
The trend underscores a cooling in consumer demand in Russia’s slowing economy, where high interest rates and persistent inflation concerns are weighing on household spending, even as officials say price growth is easing.
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