Russia Suffers Holiday Retail Nightmare As Cash Registers Crash

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Russia Suffers Holiday Retail Nightmare As Cash Registers Crash

Russian retailers were left counting the cost of a holiday-season glitch that may have caused billions of rubles in lost sales after the failure of some internet-connected cash registers required by the government to cut down on tax avoidance.

“A retail nightmare came true today, when cash registers refused to work and sales stopped,” Dmitry Alexeev, head of electronics retailer DNS Digital Store, said on Facebook Wednesday.

“Retailers across the country are cursing. What could be worse than losing the chance of trade in the days leading up to New Year?”

The crash affected about 9% of the market and cost companies as much as RUB 10 billion ($170 million) in lost revenue, according to Russian online retail lobby group AKIT.

Tech Difficulties

The company that produced the registers, Shtrikh-M, said in a statement that some of its machines failed to work properly on Wednesday and that technicians were trying to resolve the problem quickly.


Businesses that reported difficulties included  Magnit, Russia’s second-largest retailer, which said some stores halted work for a time on Wednesday.

Rosneft, Russia’s largest oil company, and Gazprom Neft said some of their fuel stations also halted sales temporarily after cash registers failed.

The government obliged retailers from July to use internet-connected registers produced by a range of companies, which transmit sales data to the authorities to improve tax collection.

The problems may have been caused by a glitch in the registers’ software and there’s no evidence that it was related to a computer virus, according to officials at two Russian cybersecurity companies, who asked not to be named as they’re not authorised to discuss the matter.

News by Bloomberg, edited by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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