Ukraine's grocery retail sector continued to grow throughout 2024, with major chains increasing their store numbers across the country. According to data from the Retail Association of Ukraine (RAU), the sector recorded hundreds of new store openings last year, indicating retailers' ongoing investment in the market.

Ukraine’s major retailers have proved resilient to the impact of the war. Whilst around a quarter of all stores were closed following the full-scale invasion in February 2022, by September that figure had shrunk to only 7%, according to the RAU. By summer 2023, new openings meant that Ukraine had restored its pre-war number of operating stores.

Giants keep on growing

ATB, the leader in the Ukrainian grocery retail market, added 47 new stores in 2024, bringing its total to 1,257 locations nationwide. The company also renovated 11 existing facilities as part of its network maintenance. ATB dominates the sector in Ukraine, with revenue last year of UAH209bn (€4.4bn).

ATB has big plans for further expansion. In 2025 the group is looking to acquire around 100 stores and open 80 new ones. In the longer term, ATB is aiming for a total of 5,000 stores – an increase of more than 250% from its current footprint, which would represent one of the most aggressive retail expansions in Ukraine’s post-independence history.

As part of its strategic push, ATB is increasingly focused on towns with populations of around 10,000 and on areas beyond major urban centres. These communities, often hosting displaced populations, have seen a surge in retail demand.

Fozzy Group opened 84 new stores while closing 32 locations. This adjustment helped the company's network (including the Silpo and Fora brands) reach 826 stores by year-end, exceeding its pre-war figures by more than 100 locations.

Lithuanian-owned Novus, which operates over 100 supermarkets across Ukraine, has also been active, opening three large supermarkets to date in 2025. The size of the company’s large-format stores makes it one of the largest retail real estate operators in Ukraine, and it issued debut bonds in September last year, raising UAH400m (€10m) secured against its real estate holdings in Kyiv.

Epicentre K, the retail arm of the Epicenter Group that runs a chain of home- and hardware hypermarkets across Ukraine, is also looking to expand its grocery retail footprint. The company is planning to open five new Food Market grocery stores in its shopping centres across various Ukrainian regions in 2025, according to food retail director Oleh Shkarovsky. The company currently operates 26 such stores and is prioritising expansion within its existing commercial infrastructure.

Resettlement driving shifting demand

The war in the country’s east has had a major effect on Ukraine’s population distribution, as people fleeing hostilities have settled in the country’s central and western regions, often in smaller settlements and not in big cities.

Western Ukraine has seen the biggest increase in new stores, with around 36.8% of openings. Kyiv and the surrounding area has also seen growth, with just under a quarter of new stores. Regions close to the front line have seen comparatively little activity. The top ten chains opened six stores in Ukraine’s eastern regions in 2024, accounting for 1.7% of the total.

As well as a shifting geographical focus, the war has affected the types of stores that the large chains are opening, with a growing preference for smaller format convenience stores.

“Close-to-home” convenience stores are nothing new in Ukraine. In 2020, the number of such stores grew by 19%, compared to a 1% decrease in hypermarkets, and a modest 4% increase for supermarkets.

This follows trends in Europe, with executive director of the Vartus chain of retailers Natalia Aziukovska commenting that “hypermarkets are a thing of the past. Look at the world: Small is beautiful, the French Auchan and the British Tesco are no longer developing them.”

The full-scale invasion has seen this trend continue during the war, in particular as a response to a shifting distribution of the population. Many Ukrainians fleeing the war have resettled in smaller settlements unserved by large supermarkets, and chains have responded by opening outlets in these areas.

The clearest indication of this trend is the rapid growth of regional player Klever Stores, whose Sim23 and Simi convenience store brands added 87 new outlets in 2024, representing a 38% growth rate. This expansion brought its total to 315 stores and moved it to third place nationwide by number of outlets, making Klever Stores the fastest-growing supermarket chain in Ukraine last year.

Another regional player that has seen significant growth during the course of the war is Faino Market, which operates a network of 198 stores around Kirovohrad oblast in central Ukraine, a quarter of which have been opened since 2023.

Big chains are also joining in. ATB co-owner Viktor Karachun told Forbes Ukraine that the chain intends to expand into communities with fewer than 10,000 residents. Novus opened its 35th Mi Market store last week in Brovary, a residential town on the outskirts of Kyiv. The Mi Market brand is part of Novus’ multi-format strategy, focused on residential areas and new developments.

War-proofing operations

The ongoing war has disrupted supply chains and electricity supply in every sector of the Ukrainian economy, and grocery retail is no exception. In December 2024, a warehouse belonging to the Silpo chain was destroyed in a Russian drone attack, resulting in over UAH400m (€8.5m) of losses.

Retailers have responded by building logistics centres designed to consolidate distribution and reduce dependence on vulnerable supply chains.

In August 2024, Aurora, Ukraine’s largest one-dollar store chain, acquired the West Gate Logistic complex near Kyiv which was almost completely destroyed by Russian artillery shells in March 2022.

The facility spans 97,000 square metres, and Aurora plans to bring the first 45,000 sqm online by the end of 2025. The full reconstruction is expected to cost over €50mn and will strengthen delivery capacity in Kyiv and surrounding regions. Aurora is also expanding other logistics facilities, enlarging its Lviv distribution centre in western Ukraine from 9,000 to 20,000 sqm.

Epicentre K launched the first phase of its logistics complex in Khmelnytskyi in western Ukraine in mid-2024, as part of a long-term infrastructure strategy. The site includes a 57,000-sqm automated facility with 11,000 pallet spaces. A high-rise warehouse and stacker crane system are planned in the second phase. The total investment is estimated at $57mn.

Novus opened a consolidated logistics hub in Kyiv in May 2024, uniting operations that were previously spread across seven locations. Covering more than 50,000 square metres and funded through an EBRD loan, the new facility is intended to reduce operating costs and improve efficiency. Its precise location has not been disclosed for security reasons.

The investments in logistics are not limited to supermarket chains. As bne IntelliNews has previously reported, infrastructure development is currently a key priority in Ukraine and the main driver of activity in the construction sector. 2025 will see a record amount of new warehouse space commissioned in Ukraine. 

Retailers are also investing in energy independence. ATB has equipped its stores with rooftop solar systems since 2024, each capable of generating 50 kW daily – more than the 39 kW average daily consumption. The surplus is donated to the retailer’s network, generating annual savings of UAH1.5mn (€31,700) per location. The company has purchased solar panels with a total capacity of 20 MW.

Epicentre has installed solar power plants on five shopping centres in Kyiv and Vinnytsia since 2022, with a combined capacity of 6 MW. The systems meet up to 30% of electricity needs. Novus is also pursuing full energy autonomy, with one store in Novy Petrivtsi already covering 65% of its needs through solar generation during summer months.