In 2022, the Russian sports equipment retail market witnessed a significant downturn, contracting by 9.4% to a market value of $4,255.4 million. This decline is attributed to a combination of sanctions resulting from the Russia-Ukraine crisis and the departure of major international brands from the Russian market. Looking ahead, the market is forecasted to further decrease by 3.7%, settling at a value of $4,097.4 million by 2027.

Russia, holding an 8.5% share of the European sports equipment retail market, has historically been a dynamic market with a range of competitors, including general merchandisers, specialist retailers, and manufacturers engaging in direct sales. Key players such as Sportmaster and Decathlon lead the market, despite a highly fragmented landscape that includes department stores, other sports brands, and e-commerce platforms like Wildberries, fostering a highly competitive environment.

The market’s contraction in 2022 and its forecasted decline through 2027 reflect the broader impacts of geopolitical tensions and economic sanctions. The exit of leading sports brands such as Nike and Adidas has notably impacted the sports equipment sector, compounding the effects of a challenging retail environment. The market’s performance between 2017 and 2022, with a compound annual growth rate (CAGR) of just 1.1%, contrasts with healthier growth in neighboring markets like the Czech Republic and Poland, which experienced CAGRs of 2.7% and 8.2% respectively over the same period.

Macroeconomic factors including demographic shifts, nominal GDP growth, and changes in disposable income also influence the market. In 2022, Russia’s population aged 15 to 64 years saw a decline of 0.7% compared to 2021, while nominal GDP grew by 22.0%, and gross disposable income per household increased by 3.1%.

However, the forecast period from 2022 to 2027 anticipates a CAGR of negative 0.8%, indicating a continued decline in market value. This expected downturn can be attributed to several factors, including intense competition leading to pricing pressures, reduced profitability for retailers, high labor costs, and shifts in consumer fashion trends. In contrast, markets in the Czech Republic and Poland are projected to grow, reaching respective values of $339.6 million and $1,103.9 million by 2027, thanks to more stable economic conditions and continued consumer interest in sports and fitness activities.

As the Russian sports equipment retail market navigates through these challenges, its recovery and growth prospects remain subdued, reflecting the broader complexities of operating within a shifting geopolitical and economic landscape.