|29th IBIMA Conference
3 - 4 May 2017
Logistical Choice of a Development Strategy in the Trade Sector
Yuliya Kuzmenko ,Alena Levina and Viktor Katochkov
In this article, we investigate the topics of retail trade and public catering which fall under the category of trade. Trade sphere requires a unified logistics system. We examine the research results of growth rates of retail trade using the Entrepreneur Confidence Index. We also offer extensive research into the main development indicators of retail trade and public catering in Russia during 2010 – 2015, using some indicators from 2016. We pay attention to retail chains development. In general, complex approach to trade development has let us develop a model and an algorithm of choosing the right retail facility location, and hence, implementing the effective trade development strategy. We prove that the strategy choice depends on the integration level of the enterprise and its territorial location. We propose three strategies. A passive (stable) development strategy provides the business with further development in retail trade. An active development strategy is based on logistics optimization and suggests wide presence at the meso-level, price leadership, and even socioeconomic development of the region, with the use of reverse logistics elements. A forward-looking development strategy suggests invariant approach forming the customer journey.