Wildberries warehouse attacks disrupt Russian retail and franchise operators

Moscow, Russia. Drone attacks on Wildberries warehouses since July 18 have disrupted the Russian e-commerce retailer’s logistics network, damaging or destroying more than a fifth of its storage capacity, according to a Reuters review of satellite imagery. The disruption has affected franchise operators and small businesses that rely on the platform.

Impact on pick-up points

Vasily Klimov, who operates a Wildberries pick-up point in Moscow under a franchise agreement, said his business had shifted from being profitable to loss-making within three weeks.

Klimov runs one of 98,000 pick-up points in Russia and neighbouring countries where customers collect goods ordered through Wildberries.

“Sales have dropped by about 50% over the past month, and that is because there are almost no deliveries,” Klimov said. “The last month has been entirely loss-making.”

Damage to warehouses

Ukraine began targeting Wildberries warehouses across Russia on July 18 in a wave of near-nightly drone attacks, according to the report.

Attacks on around 20 Wildberries sites have caused major fires, destroyed warehouse stock and disrupted the company’s logistics network across Russia.

A Reuters review of satellite imagery found that at least 1.18 million square metres of storage space, more than a fifth of Wildberries’ capacity, had been damaged or destroyed.

Wider retail effects

The disruption has affected not only franchise operators such as Klimov but also tens of thousands of small businesses that use Wildberries to sell products online.

At least 13 people have been killed in the warehouse attacks. Ukraine, which Russia invaded in February 2022, denies targeting civilians and says the strikes are part of a campaign to bring the war to ordinary Russians and increase the cost to Moscow of continuing the conflict.