Russian Shoppers Want Imports Even After the Ruble's Fall

Jan. 1 is Russia’s answer to Christmas, a day for exchanging gifts after a night of feasting. But as shoppers crowd into Moscow’s malls and big box stores before the holiday, they may glimpse some truths about their economy that could spoil the festive mood. At the huge Mega Belaya Dacha mall, entire sections of M.video, a consumer-electronics store, have been stripped bare by customers who hauled imported televisions, washing machines, and microwaves off to the checkout counters. They were buying as a hedge against rising prices after the ruble plunged almost 20 percent on Dec. 16. Ruble volatility led Ikea to suspend sales of kitchen furniture and appliances for several days. Many stores, still selling inventory from before the ruble crash, haven’t raised prices yet. But no one doubts they will. Apple announced a 35 percent price hike on Dec. 22.

A devalued currency ought to be good for an economy like Russia’s, which is forecast to contract as much as 5 percent in 2015. With a cheaper ruble, domestic manufacturers could gain an edge in export markets, and growth could get a boost as consumers switch to local goods.