RETAIL MARKET IN UKRAINE: TRENDS AND PERSPECTIVES OF DEVELOPMENT IN A CRISIS

Keywords: retail trade, retail, retail market, grocery retail, drogerie retail, e-commerce, private label, crisis

Abstract

Іntroduction. The Covid-19 pandemic, environmental changes and the economic crisis are changing the conditions and principles of business today. Nowadays, there are special requirements and restrictions need to be applied to operation of commercial enterprises, in particular – to the field of retail . The retail market should implement modern management methods, innovative technologies and sales tools to overcome the effects of the crisis.

The purpose of the article. The purpose of the article is to investigate the development trends of the retail market in Ukraine; outline the main priorities and opportunities for further effective operation.

Results. Domestic trade is an important area of economic growth, as it accumulates more than 13% of GDP in Ukraine. The modern retail market shows annual growth and it belongs to the most rapidly developed segments of the Ukrainian economy. It is represented by a wide variety of forms of interaction between seller and buyer. Some companies work on a narrow target audience, others focus on mass sales - belong to the field of retail. In 2019 retailers provided 72.5% of retail sales.

The main features of the retail market in Ukraine are: annual growth of turnover, number of shops and retail space; development of franchise networks; growth of own brands; increasing logistics capacity; low level of market concentration and high intensity of competition; emphasis on the formation of positive consumer demand; increasing corporate social responsibility.

Priorities in the development of retail market should be focused on such areas: providing safety for buyers and convenient services offline; growth of e-commerce; development of information technologies in the field of retail; increase share in trade for retailers of their own brands (private label), partial replacement of supermarkets with discount stores and shops close to the houses.

Сonclusiоns. Ukrainian retail market shows annual growth and it is one of the fastest growing segments in Ukrainian economy. The consequences of the economic crisis and quarantine restrictions will affect the activities of Ukrainian retailers. This requires adaptation of trading methods to new conditions and intensification of innovative activities in the field of retail trade.

References

1. Antonyuk Ya. M. & Shyndyrovsky I. M. (2019). Tendenciji rozvytku rytejlu v Ukrajini [Trends of retail development in Ukraine]. Pidpryjemnyctvo i torghivlja - Entrepreneurship and commerce, 24, 22-30 [in Ukrainian].

2. Strukturni zminy ta suchasni tendentsii rozvytku vnutrishn'oi torhivli Ukrainy [Structural changes and current tendencies of development of domestic trade of Ukraine], Apopij V. V., Mischuk I. P., Antoniuk Ya. M. ta in.; za red. prof. Apopiia V. V. (2017), «Novyj Svit-2000», L'viv, 440 [in Ukrainian].

3. Ligonenko L. & Krasnevych G. (2011). Innovacijnyj vektor rozvytku torgivli v Ukrai'ni [Innovative vector of commerce development in Ukraine]. Tovary i rynky – Goods and markets, 1, 7-14 [in Ukrainian].

4. Lubov Lipych, Anna Mokhniuk (2020). E-business in Ukraine: peculiarities, tendencies, prospects. Ekonomichnyj chasopys Skhidnojevropejsjkogho nacionaljnogho universytetu imeni Lesi Ukrajinky –Economic Journal of Lesya Ukrainka Eastern European National University, 21, 74-79 [in English].

5. Fedulova L. (2017) Informacijno-tekhnologhichna infrastruktura ritejlu [Retail information technology infrastructure]. Visnyk Kyjivsjkogho nacionaljnogho torghoveljno-ekonomichnogho universytetu – Bulletin of the Kyiv National University of Сommerce and Economics, 4, 21-42 [in Ukrainian].

6. Sait «Asotsiatsiia ryteileriv Ukrainy» [Website of the Ukrainian Retailers Association]. rau.ua. Retrieved from https://rau.ua [in Ukrainian].

7. GT Partners Ukraine. allretail.ua. Retrieved from http://allretail.ua/ [in Ukrainian].

8. Sait «Derzhavna sluzhba statystyky Ukrainy» [State «Statistics Service of Ukraine»]. ukrstat.gov.ua. Retrieved from http://ukrstat.gov.ua [in Ukrainian].

9. Sylkina Yu.O. (2017). Problemy ta perspektyvy rozvytku rynku rozdribnykh torghoveljnykh merezh v Ukrajini. [Problems and perspectives for the development of the market for retail trade chains in Ukraine] Naukovyj visnyk Mizhnarodnogho ghumanitarnogho universytetu - Scientific Bulletin of the International Humanities University, 25(1), 152-157 [in Ukrainian].

10. Rekordnyi rik: skilky mahazyniv vidkryly naibilshi merezhi Ukrainy v 2019-mu [Record year: how many stores opened Ukraine's largest networks in 2019]. Retrieved from https://rau.ua/novyni/skolko-magazynov-otkryly-2019/ [in Ukrainian].
Published
2020-06-30