Basic growth strategies of the retail trade enterprises (by the example of Donetsk region)

Economic Annals-ХХI: Volume 135, Issue 11-12(1), Pages: 66-69

Citation information:
Frolova, L., & Alekseeva, N. (2013). Basic growth strategies of the retail trade enterprises (by the example of Donetsk region). Economic Annals-XXI, 11-12(1), 66-69. https://ea21journal.world/index.php/ea-v135-17/

Larysa Frolova
D.Sc. (Economics),
Professor,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky
31 Shchorsa St., Donetsk, 83050, Ukraine
larisa.frolova@mail.ru

Natalia Alekseeva
Senior Lecture,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky
31 Shchorsa St., Donetsk, 83050, Ukraine
alekseeva_n_i@mail.ru

Basic growth strategies of the retail trade enterprises (by the example of Donetsk region)

Abstract. Issues of development and base strategies realization for retail trade enterprises is not enough investigated in works of modern scientists-economists and weakly applied in practical activity of concrete trade enterprises, that has stipulated actuality of research. Majority of the retail trade enterprises at present not only do not carry out scientifically grounded development and realization of strategies of growth, but frequently does not present what strategy they are realizing at the moment. The purpose of the article is analysis of retail business modern development trends in Donetsk region of Ukraine, as well as basic growth strategies for such enterprises. In spite of the determined positive tendencies of commodity turnover growth, the analysis of retail trade enterprises financial results dynamics for five years testifies to growth of share of unprofitable enterprises, which takes more than third part (35,5%) by the end of 2012. Therefore, in the article a conclusion is done about the necessity of development and realization of growth strategies on the trade enterprises. For the analysis of growth strategies realization, eleven enterprises of Donetsk, the basic type of activity of which is retail trade of food and consumer goods were researched. Despite profit growth at the some of researched enterprises, it is determined that none of the considered enterprises is engaged in development and realization of strategies, although a part of enterprises has absolutely certain strategic aims and tasks. The top managers interviewing was conducted with the help of a questionnaire method and of the questionnaire had been made by the authors. It concerned the enterprises development strategy accordance to the basic strategies of growth. As the result, primary purposes and strategies of each analysed enterprise were considered. According to the results of the managers interviewing and on the basis of the point’s estimation method, the recommended basic growth strategies were determined for all of the analysed enterprises. Namely, the perspective for five enterprises is to use the strategies of the diversified growth, for three other – integrated growth, and all of the enterprises should be oriented on the strategies of concentrated growth applying.

Keywords: Growth Strategy; Retail Business; Dynamics of Commodity Turnover; Profitability; Financial Result

JEL Classification: M20; M29

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Received 08.10.2013