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Modern Retail Formats Continue to Strengthen Their Position in Kazakhstan's Market

Kazakhstan's retail market continues to transform as the share of modern retail chains and e-commerce grows, while traditional retail gradually loses ground. At the same time, experts note that small shops and traditional markets continue to play an important role in urban infrastructure and local economies.

Modern Retail Expands Its Market Share


According to InfoLine, the share of revenue generated by traditional stores and markets declined from 61% to 55% between 2023 and 2025. During the same period, the share of online retail increased from 9% to 15%, while the country's largest retail chains now account for approximately one-third of total retail sales.

According to Nielsen, modern retail formats continue to strengthen their position. In 2019, the split between modern and traditional retail stood at 44% versus 56%. By the end of 2024, however, modern retail had increased its share to 55% of the market.

Despite this shift, Kazakhstan still maintains a relatively larger share of traditional retail compared with several developed markets. In neighboring Uzbekistan and Kyrgyzstan, traditional retail formats account for 84% and 78% of the market, respectively.

Retail Chains Continue to Expand


Industry experts believe that the continued growth of chain retailers remains a long-term trend. Modern retail formats benefit from standardized business processes, broader product assortments, advanced logistics, and a higher level of digitalization.

At the same time, e-commerce continues to expand and has become one of the key drivers of the retail market alongside supermarket chains and neighborhood convenience stores.

Traditional Markets Undergo Modernization


The modernization of traditional markets is also continuing. Infrastructure upgrades are aimed at improving the quality of retail facilities, creating a more comfortable environment for shoppers and entrepreneurs, and promoting more organized retail operations.

Analysts also note that markets are gradually shifting toward more specialized offerings, with a stronger focus on fresh farm produce, locally made products, and unique assortments.

Small Businesses Remain Important


Despite the growing influence of large retail chains, small independent stores remain an essential part of the urban landscape. They provide convenient access to everyday goods, support local entrepreneurship, and continue to fulfill an important social function, particularly in smaller towns and residential neighborhoods.

According to experts, the future development of Kazakhstan's retail sector will depend on maintaining a balance between modern retail formats, e-commerce, and traditional marketplaces, each of which continues to occupy its own niche within the country's retail ecosystem.