Store rebranding drives growth in grocery franchises

By the end of August 2026, Russia had 20,400 grocery shops operating under franchise agreements, up 23% year on year. However, the increase in shops trading under chain brands does not imply a comparable number of new openings. According to Mikhail Burmistrov, chief executive of Infoline-Analitika, most of the growth came from rebranding existing independent shops.

What lies behind the 23% increase

The Infoline figures were reported by Realnoe Vremya in an article published on 20 October, citing Kommersant. They show the expanding presence of grocery franchises, with the number of shops operating under this model reaching 20,400. According to the report, Okolo, part of X5, recorded the strongest growth.

The key qualification concerns the source of this growth. Mikhail Burmistrov attributes it mainly to the rebranding of existing independent shops rather than new store openings. In other words, the change is primarily in how existing retailers operate: a shop joins a chain, but the retail outlet itself is already there.

This is an important distinction for the franchise sector. The number of shops trading under particular brands can increase without a corresponding rise in the number of physical retail locations. Growth in franchise networks alone therefore does not tell us how many shops have opened from scratch.

The expert's assessment does not mean that no new shops are opening. The report says rebranding accounted for most of the growth, but provides no numerical breakdown between existing shops joining networks and new outlets opening. It would therefore be inappropriate to turn that assessment into specific percentages.

Overall growth masks differing results

Despite the overall rise in franchised grocery shops, the number of outlets belonging to regional grocery franchise networks fell. According to Infoline, it declined by 2.3% from the start of 2026 to 11,900.

Some individual chains also reported fewer shops. Over a six-month period, Domashkino's store count fell by 10% to 1,500. Fasol, developed by Metro, recorded an 8.2% decline to 1,100. Avokado, developed by Sladkaya Zhizn Group, saw its number of outlets fall by 1.1% to 5,800.

These figures describe changes in network size, but do not reveal what happened to each shop. A fall in the number of outlets trading under a brand cannot automatically be equated with the closure of every shop that left the network. The data provided do not establish which shops ceased trading and which may have continued operating under a different model.

The overall 23% increase and the contraction of individual chains should therefore be read as different aspects of the same picture. The first figure reflects growth in the total number of franchised grocery shops. The others show that performance within this growing sector varies between operators.

Why the reporting periods matter

The published figures use different comparison periods. The overall total of 20,400 shops is for the end of August 2026 and is compared with the same period a year earlier. The decline in outlets belonging to regional grocery franchises is measured from the start of the year. Changes at the three named chains cover a six-month period.

These differences limit direct comparisons between the percentages. For example, it is not valid to subtract the decline in regional franchises from the overall annual increase and treat the result as the contribution made by other operators. Such a calculation would require comparable data covering the same dates.

Nor do the published figures provide a basis for calculating the exact number of shops that switched from independent operation to franchising. That would require a separate breakdown showing how outlets were added to the networks. Burmistrov's assessment explains the main trend, but is no substitute for those statistics.

To interpret the news correctly, it is important to distinguish between three measures: the number of shops trading under franchise brands, the number of new physical outlets, and changes in the store count of a particular chain. This report provides figures for the first and third measures.

What this means for prospective franchisees

Entrepreneurs considering a grocery franchise should establish what kind of experience underpins a network's reported growth. Bringing an existing shop into a network and opening a new outlet from scratch involve different starting points, even if both are subsequently included in the franchisor's overall statistics.

When discussing an offer, ask for separate figures for new openings and existing shops joining the network over the same period. Owners of existing shops will find examples of rebranding particularly relevant; entrepreneurs without a shop should look at the results of openings from scratch. This will help you compare your own plans with the network's experience, rather than relying on an overall growth figure.

Practical takeaway: the 23% rise in franchised shops shows the expansion of chain-affiliated retailing, but is not equivalent to growth in new openings. When choosing a franchise, establish which types of outlet are driving the network's expansion and how closely that route matches your own plans.