Efficiency of Retail Enterprises in Context of Achievement of Competitive Advantages: Ukrainian Realities

Abstract

The development of trade sector of the Ukrainian economy triggers the need to study the processes of formation and evaluation of the retail business efficiency taking into account the current conditions of economic development. The objective of research is a methodology for assessing the performance of retail. The proposed methodology is based on the target, resource, dynamic approaches to the efficiency assessment and contains determined efficiency indicators in accordance with evaluation criteria. The indicators of the efficiency assessment take into account the specifics of the retail according to the subjects of assessment: retailer, consumer, competitor, supplier. Proposed methodology for assessing the efficiency allows us to calculate indicators in accordance with the selected approaches to the assessment and identify the problems to be addressed by the retailer’s management. Considering the requirements and interests of stakeholders to assess the efficiency of retail businesses helps to achieve the most recent competitive advantages.

Study of Competitive Advantages of Retail Company in Lithuania

“…Some of the most influential factors in the development of retail are customer service opportunities, relationships with suppliers, competition between retail formats, business innovation, government policy in the retail sector, integration and internationalisation of retail businesses, and relationships with financial institutions, and institutional agencies. Chorna et al (2021) notice that the specifics of the retail sector are in particular as regards its functional characteristics and consists of: orientation to meet needs consumers of goods and services for final consumption; low capital intensity of the trade and production process on the limited list of nomenclature headings fixed assets as well as their lower value in compared to companies in other sectors economics; high rate of return on capital compared to low profitability and short payback time of invested capital, which increases the attractiveness of retail.…”