According to preliminary 2012 data, its earnings will total 490 billlion roubles while Magnit, its main competitor, posted a 34 percent growth and a total of 448.5 billion roubles in revenue.

Analysts have linked the decline in earnings with a wave of staff reshuffles that have plagued the company over past several years.

As a result of both factors, the flagship retailer’s shares plunged from record $48 to $17.7. 

Magnit is set to take over as early as in first quarter of 2013, says Natalya Zagvozdina, equity research analyst at Renaissance Capital.