Bank of Russia finds some demand shifted to stores amid marketplace disruption

Delivery difficulties at online marketplaces supported sales for some physical stores in August and September. Traditional retail did not fully offset the decline in online commerce, according to the Bank of Russia's October regional economy report.

The Regional Economy report links lower online turnover to damaged warehouse infrastructure and logistics difficulties. Assessments of demand in traditional retail improved somewhat.

Some retailers in the Central Federal District reported higher clothing sales in physical stores. They identified temporary marketplace difficulties as one factor, while online sales declined.

In the Volga Vyatka macroregion, selected building materials retailers also reported higher store sales because of marketplace disruption. Demand for building materials in the area nevertheless weakened slightly overall.

About 11,500 businesses participated in the October survey used for the report. Across Russia, short term demand expectations among retail and service companies improved in October.