How is the Ukrainian retail sector evolving during the war?

Andriy Zhuk, Chairman of the Retailers Association of Ukraine (RAU), observed that last year pharmacy retail was the most actively developing segment, accounting for 45% of all new retail locations. Non-food retail and grocery stores represented 22% and 16% of new outlets, respectively.

Meanwhile, the electronics sector faced fierce competition, resulting in market oversaturation, which could lead to a reduction in the number of stores. The war has also complicated operations in the children’s and premium goods markets.

Currently, the highest concentration of retail stores is found in Kyiv and its surrounding areas, exceeding 5,500. In 2024, the number of retail outlets in the region increased by over 600. The Dnipropetrovsk region follows with 2,000 stores, including almost 300 opened last year; the Lviv region also hosts 2,000 facilities, along with two cities with a population over a million – Odesa and Kharkiv.

Zhuk believes that once the full-scale war concludes and Ukraine joins the EU, the retail market’s growth in Ukraine will surpass that of any other country on the continent.