Apartment demolition: construction retailers close stores amid reduced demand for repairs

Construction retailers are faced with network optimization amid declining demand for repair work, Izvestia has learned. So, the Stroitelny Dvor store chain closed 98 outlets in 2025, reducing their total number by 23% to 322. The number of hypermarkets of the former OBI in Russia (now Dom Lenta) decreased by 12%, to 23 hypermarkets. Against the background of a decrease in housing construction by 12% and an increase in the savings model of consumer behavior, the demand for finishing materials decreased. According to Infoline, by the end of last year, the total sales of DIY retailers decreased by 2% and amounted to 1.15 trillion rubles. What is happening with the household goods market is in the Izvestia article.

Who closed the stores in 2025

The Stroitelny Dvor chain of repair and home goods stores closed 98 outlets by the end of 2025, and their number decreased by 23% over the year, the Infoline analytical company calculated for Izvestia. These include three construction bases in the Tyumen Region and Khanty—Mansi Autonomous Okrug, as well as eight supermarkets and 87 small-format facilities, according to the organization. They clarify that at the end of last year, the retailer managed 322 facilities with a total retail area of more than 135 thousand square meters. m. A representative of the Construction Yard did not respond to the request.

Other retailers also faced a decrease in the number of outlets. The number of ex-OBI stores in Russia (now DomLenta) decreased by 12% to 23 hypermarkets, according to the materials for the financial statements of their legal entities under RAS. At the same time, the new owner of the network now has a strategy to revive the business, a source familiar with the company's plans told Izvestia. According to him, closures can occur on the initiative of the owners of buildings housing hypermarkets.

A representative of the retailer declined to comment.

In January, Lenta announced the purchase of OBI's Russian business. The German company came to the country in 2003. In 2022, she decided to leave the local market and closed stores in Russia, where 27 hypermarkets were operating at that time.

Maxidom, which bought out the British Castorama business in 2020, closed the last facility under the brand of a foreign chain last year. At the same time, the total number of the retailer's stores decreased from 31 in 2024 to 30 by the beginning of 2026, according to Infoline data. Izvestia sent a request to Maxidom.

Why are retailers losing revenue

The trend of closing DIY stores (goods for repair, construction and home improvement, garden and creativity) is largely related to structural changes in the industry, according to a representative of <url>. According to him, the traditional retail format is characterized by a high proportion of fixed costs — rental and operating. This situation, in the context of slowing demand, makes the business model less flexible, he is sure. Renting and maintaining low-profit retail outlets in conditions of expensive loans and rising logistics costs is becoming an "unacceptable luxury," agrees Svetlana Ilyashenko, Associate Professor of Trade Policy at Plekhanov Russian University of Economics.

By the end of 2025, the total sales of DIY retailers decreased by 2% to 1.15 trillion rubles, Infoline estimated. According to her, the largest player in the market, Leman Pro (until June 2024, Leroy Merlin), reduced revenue by 6% year-on-year, to 550 billion rubles. And the total revenue of the three operating companies operating the ex-OBI stores in Russia (DIY Northwest LLC, Diy and Ob Franchise Center) decreased by 10% year-on-year, to 25.2 billion rubles, according to the materials of the reports of these legal entities.

2025 showed a decrease in customer activity in the market as a whole, primarily in the B2B and professional customer segments, said Marcel Sagetdinov, Director of Business Efficiency at Leman Pro. At the same time, his company was able to increase its retail customer base by more than 2%, as well as increase business profitability and increase operating profit by more than 20%, the top manager said. According to him, the stagnation in housing construction, rising prices for building materials with falling production, as well as a slowdown in real income growth and "structural problems" in the industry have a negative impact on market development.

The number of purchases of goods for construction and repairs increased by only 1%, and the median price was 9597 rubles (+4% year-on-year), calculated by the Check Index service of the OFD Platform (it takes into account information from 1.1 million online sales registers). The number of purchases of household goods decreased by 3%, and the median price decreased by 2%, to 3,403 rubles.

Nadezhda Kolioglo, Head of Leman Pro's Consumer Behavior Research and Market Analysis Department, confirms a "restrained and rational" approach to consumer spending on repairs and home improvement. According to her, buyers remain interested in repairs, but they are more careful and selective in planning purchases and budgets.

In 2025, construction of 41.3 million square meters began in Russia. m of new housing, which is 12% less than in 2024, according to a report by the analytical center Dom.RF. At the same time, the stagnation of the construction market contrasts with the high base of previous years, when demand was spurred by preferential mortgages, said Ekaterina Kosareva, managing partner of the VMT Consult agency. According to her, the savings model of consumer behavior also influenced the drop in sales. This led to the fact that repairs, as a large and often credit investment, go into deferred demand, Svetlana Ilyashenko explained. According to her, consumers prefer to keep their money in the bank.

According to the Finuslugi portal, the index of deposit rates in the top 20 largest banks as of March 23 (the latest available data) was 12.29–13.69% per annum.

The decrease in traffic in DIY stores does not fully reflect the decline in interest in such products, Ekaterina Kosareva believes. The demand has shifted to online platforms, the representative of <url> agrees. They sell products directly to both manufacturers themselves and wholesalers. According to Infoline estimates, the sale of construction materials in 2025, including online platforms, increased by 13.2%, to 2.02 trillion rubles without VAT. The combined sales of the three largest marketplaces (Wildberries, Ozon and Yandex Market) in this category of goods increased by 42.5%, to 867.4 billion excluding VAT.

Prospects for construction retailers in 2026

In 2026, the drop in demand for construction products will not be so significant, Ekaterina Kosareva believes. At the same time, according to her, a significant decrease will occur in the next two to three years. This will be affected by a reduction in the volume of new construction projects, she believes.

Retailers may face a new wave of inflation, Svetlana Ilyashenko from Plekhanov Russian University of Economics expects. She predicts an increase in purchase prices for construction goods at the level of 7-15% in conditions of stagnant demand. This situation may put some networks in a "difficult position" and lead to a further reduction in operating margins and new waves of optimization, the expert argues.

The defrosting of construction projects is carried out by the representative of "All Tools.<url>" is waiting only at the end of 2026 - in 2027.