Developing the Logistics Strategy by «MOHITO» Retailer in Siberia and the Far East

Abstract

The strategic development of retail is taking place in a fiercely competitive environment. In the context of the coronavirus pandemic and the weakening of the ruble, the development of the strategy has become particularly important for retailers. The apparel market has a number of specific features that significantly affect the formation of the development strategy. One of the most important directions in achieving competitive stability is to optimize logistics costs through the development of the distribution network. The article presents the results of a study of the competitive position of the apparel brand "MOHITO". The study proved the logistics strategy of the retailer in Siberia and the Far East as well-founded. This strategy is based on the organization of a distribution centre in Irkutsk which leads to reorganization of the supply chain of the LPP holding including the retailer "MOHITO". We also provided supporting rationale of the capacity of the potential market of the retailer in Siberia and the Far East in the case of the opening of a reference distribution centre in Irkutsk.