Magnum retreats from Tashkent as large-format stores don’t fit local market

Magnum Cash & Carry, a well-known retail chain headquartered in Almaty, Kazakhstan, has shut down four of its supermarkets in Tashkent, Uzbekistan’s capital. While the company still operates three stores in the city, their product assortments are reportedly shrinking, according to Frank.uz.

The first closure occurred in February 2024. This was followed by two more stores closing in May 2025, allegedly due to relocation plans. Most recently, in early June, social media users noted that Magnum had shuttered its branch at the Samarqand Darvoza shopping center. Meanwhile, the remaining outlets have been seeing a gradual reduction in inventory.

This retrenchment comes in stark contrast to Magnum’s previous ambitions. Back in November 2023, a company representative announced plans to expand to 17 stores in Uzbekistan, adding 10 new locations. The company has declined to comment on its recent downsizing.

Retail experts suggest that Magnum struggled to adapt to the unique characteristics of the Uzbek consumer market. Yahya Abdumutalibov, COO of Foydaly, a local discount aggregator, offered his take on LinkedIn:

«It doesn’t always work out, even if the brand is strong, the team is experienced and the format is in demand. For us at Foydaly, this is another confirmation that Uzbekistan’s retail market is growing, but on its own terms. You can’t just import a business model from another country — you need to account for local buying habits, price sensitivity and loyalty to local chains.»

Andrey Demyanov, a retail consultant with experience at Magnum and other Uzbek chains, believes store location choices played a major role:

«We all know that 95% of a store’s success comes down to location. Closing two unprofitable outlets is simply a natural correction. No one wants to keep investing in underperforming stores.»

Additionally, Frank.uz reported that Magnum faced challenges establishing a solid logistics infrastructure within Uzbekistan — a crucial factor in the country’s competitive retail landscape.

Magnum entered Uzbekistan in 2021 with two initial stores: a hypermarket and a supermarket. In 2023, the company acquired several outlets from Carrefour, which had exited the Uzbek market that year. However, analysts argue that the hypermarket format has yet to gain traction among local consumers, who tend to prefer smaller stores with lower prices and are less concerned with product quality.