L'Etoile to close 150 stores in 2026 amid financial decline and market struggles
L'Etoile Plans to Close 150 Stores in 2026 as Part of Business Optimization
Russian cosmetics retailer L'Etoile intends to shut down 150 stores in 2026 amid a broader business restructuring, Izvestia reports. Industry experts attribute the decision to a reassessment of offline store efficiency, declining foot traffic, and shifting consumer habits. In 2025, the company posted its first net loss since 2012—1 billion rubles ($11 million)—compared to a profit of 1.9 billion rubles ($21 million) the previous year.
Sources familiar with the company's plans told Izvestia that L'Etoile will close 150 outlets next year, a move confirmed by Marketing Director Tatiana Lomteva. She described the closures as part of a "planned optimization," explaining that the company is reviewing the performance of its locations, analyzing customer traffic, and adapting to changes in consumer behavior.
In 2025 alone, the retailer already closed 93 stores, reducing its network by roughly 10%, a source close to the company specified. At the start of 2026, L'Etoile notified landlords of its decision to terminate leases for a number of locations, according to one of the chain's partners. The move was partly linked to difficulties in obtaining licenses to sell certain international brands, including Chanel, which led to a shrinking product range and weaker sales in physical stores.
Meanwhile, Pavel Lyulin, an expert with the Association of Retail Real Estate and Retail Experts (ATRE), noted that while L'Etoile closed underperforming stores in 2025, it also opened 13 new ones. Lomteva clarified that the network had actually launched six new outlets. She attributed the overall reduction in store count to evolving consumer preferences and a shift in demand toward online shopping.
A source told Izvestia that in recent years, the company had "aggressively" expanded its e-commerce platform, which may have drawn traffic away from brick-and-mortar locations.
Vladimir Chernus, head of retail real estate at IBC Real Estate, suggested that L'Etoile's declining store numbers also reflect heightened competition from rival chains like Zolotoy Yabloko (Golden Apple) and online marketplaces.
According to financial reports cited by Izvestia, Alkor & Co.—L'Etoile's managing company, owned by Cyprus-based Letu Holdings—saw revenue fall by 6% in 2025 to 83.9 billion rubles ($920 million). The company reported a net loss of over 1 billion rubles, marking its first unprofitable year since 2012, compared to a profit of 1.9 billion rubles in 2024.
The trend extends beyond L'Etoile. Industry experts report that the Podruzka chain has closed 25 stores, while Rive Gauche has reduced its network by about 10%. The Ile de Beauté chain has also paused expansion, noted Zulfiya Shilyaeva, head of retail real estate at CMWP.
Data from BusinesStat, as quoted by Izvestia, shows that Russia's cosmetics sales declined by 2% in 2025 to 3.9 billion units. Analysts expect retail networks to continue optimizing their operations in 2026.
