Overview of the Retail Assortment Optimization Trend
In July 2025, Russian food retailers recorded a 2.3% year-over-year reduction in the range of food products, while non-food items saw a 1.8% decline, according to data from Nielsen and reported by Kommersant[1]. The contraction was even more pronounced in specific categories: alcohol product selections dropped by 5.6%, children's goods by 5.1%, baby care by 8.3%, and facial care products by 7.3%. The only category to buck the trend was hygiene products, which grew by 1%[1].
This trend reflects a deliberate shift in retail strategy, as chains reduce floor space and focus on smaller-format stores, prioritizing ready-to-eat meals and cutting back on non-food offerings. From January to July 2025, the average grocery store area shrank by 0.7%, evidence of a broader move toward compact, neighborhood-focused outlets that respond to shifting consumer habits[1]. Retailers are also conducting rigorous reviews of their product lines, discontinuing less popular items and, in some cases, subletting freed-up space to third-party services[1]. This process of optimizing product assortment benefits from a sophisticated Product feed management system.
Drivers Behind Assortment Reduction
The primary driver for this optimization is economic: high rental costs, inflation, and a consumer base increasingly focused on value and essential goods. According to Rosstat, prices have risen by over 40% since the onset of recent geopolitical tensions, prompting nearly 60% of consumers to forgo certain products they previously purchased and 57% to seek lower-priced alternatives[2]. The result is a flight to hard discounters and a preference for stores that offer a tightly curated selection of high-demand essentials.
Retailers have reached an inflection point where the experiment of expanding assortments to attract diverse customer segments is giving way to a focus on efficiency and profitability. "Now retailers have come to the point which it is possible to draw conclusions about the success of previously launched brands, and in conditions of limited shelf space, they withdraw those that are not popular with customers," explains Saltanat Nysanova, Director of Client Service at Nielsen[2]. Effective management of a product catalog, as discussed in our Creating a Product Page blog post, is critical during this transition.
Implications for E-commerce and Content Operations
Impact on Product Feeds and Catalog Standards
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Conclusion: A New Phase for Russian Retail
The current wave of assortment optimization in Russian retail marks a transition from expansion to efficiency. Retailers are responding to economic pressures, changing consumer behavior, and a complex regulatory environment by consolidating their offerings, reducing store sizes, and focusing on high-margin essentials. For e-commerce and content operations, this shift demands greater discipline in catalog management, higher standards for product content, and increased reliance on automation to maintain agility. Learning how to use Delta Feeds can help reduce the manual work involved, as explained in our detailed guide.
As the market continues to evolve, the ability to rapidly adapt product feeds, ensure content quality, and leverage no-code and AI tools will separate leaders from laggards. The retailers that succeed in this environment will need to balance operational efficiency with the flexibility to meet changing consumer needs—both online and offline.
NotPIM Expert Commentary: This assortment rationalization trend is highly relevant for e-commerce players. The need for streamlined catalogs, accurate product data, and rapid adaptation to changing inventories directly aligns with the challenges that NotPIM's solutions address. NotPIM can help retailers maintain inventory accuracy, manage product updates effectively, and respond quickly to the evolution of product lines, which is crucial for navigating these shifting market conditions. The focus on high-demand essential goods, particularly online, will require optimized catalogues to respond to consumer demand and drive conversions. Learning more about how to create an effective loyalty program for your online store can also be beneficial to drive customer loyalty and retention. A significant component to effectively managing your inventory and product catalogs is using the right CSV and JSON formats.