Key facts
- Ukrainian drone attacks on Wildberries warehouses since July 18 have caused significant damage and disruption.
- At least 1.18 million square meters of storage space have been damaged or destroyed.
- Sales for franchise operators have dropped by approximately 50% due to delivery disruptions.
- At least 13 people have been killed in the attacks.
- The attacks could lead to a wave of bankruptcies among Russian small and medium-sized businesses.
- Over 3,100 Wildberries pick-up points are listed for sale.
Ukrainian drone attacks targeting Wildberries warehouses across Russia since July 18 have severely disrupted the country's largest e-commerce platform, impacting its logistics network and causing significant financial losses for franchise operators and sellers.
At least 20 Wildberries sites have been hit, resulting in major fires and the destruction of an estimated 1.18 million square meters of storage space, over a fifth of the company's capacity. This disruption has led to a drastic drop in deliveries and sales, with some franchise operators like Vasily Klimov reporting a 50% decrease and operating at a loss. Klimov is now attempting to sell his pick-up point, which, like over 3,100 others, has been listed for sale.
Ukraine states these strikes are part of a campaign to 'bring the war home' to ordinary Russians and increase the cost of the conflict for Moscow. The company's product range includes items that could support military efforts, though both Wildberries and the Kremlin deny supplying the army.
The sustained targeting of Wildberries, which handles goods and services equivalent to 8.5% of Russia's economy, is sending shockwaves through the retail sector. Economists warn that these supply-side shocks could complicate the central bank's efforts to lower interest rates, as inflation remains a concern. Russia's largest lender, Sberbank, is considering increasing loan-loss provisions, and a source close to the Kremlin predicts a wave of bankruptcies among small and medium-sized businesses unrelated to the war.
Wildberries has stated it has increased discounts, granted payment deferrals, and made compensation payments to over 97,000 affected sellers. However, some businesses, like fashion brand Finn Flare which lost products worth over 100 million roubles, are still seeking further negotiation, while others, like toffee-maker Anna Starostina, are less optimistic about compensation.