(MENAFN- UkrinForm) This information comes from Ukraine's Foreign Intelligence Service, as reported by Ukrinform.

The downturn is attributed to a collapse in consumer purchasing power, rising rental costs, and tightening credit conditions, which have stalled the development of the country's fashion sector.

Between January and September, only 27 new brands launched in Russia - half the number recorded during the same period last year. Cosmetics stores are closing en masse, no new footwear brands have entered the market, and 38% of clothing stores in Moscow shopping centers have shut down.

Read also: Layoffs hit Russian defense industry, Ukraine's CCD reports

Most emerging brands are now opting for online marketplaces, as opening a physical retail location has become expensive.

Analysts suggest the market will only begin to recover if the economy stabilizes and interest rates decline. A similar retail crisis occurred in 2015, when it took nearly three years for the sector to rebound.

As earlier reported by Ukrinform, amid mass layoffs at Russia's AvtoVAZ automotive plant, skilled workers are being offered temporary jobs cleaning utility rooms.

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