Abstract
The global crisis that hit the world economy at the end of the first decade of the 21st century has significantly affected Russia. Since 2014 and up until now, due to internal and external reasons, there has been an almost continuous decline in real disposable income of Russian households. Many Russian families are forced to economize down to the essentials. As is generally known, food costs are at the very bottom of Maslow’s hierarchy of needs, and their reduction occurs in the last place. However, within this primary segment of consumption negative processes also occur; in determining the structure of costs the choice is cast over the quality of food and in favour of its affordability. Faced with the fall of its turnover, even large retail chains brands are forced to improve their pricing strategies in order to stabilize their falling revenues in the face of increasing competition. “How can they achieve this?” is the question the authors of two articles in this series attempt to answer. The first article examines problems associated with development of “customer loyalty programs”, and proposes a model for improving the existing system of trade margins. The article also looks at the advantages and limitations of the proposed model.
Highlights
The food retail industry is one of the most important sectors of national reproduction, since it ascertains the national food safety
The effective pricing strategies in the food retail market can lower the influence of the negative influence of the crisis upon the economy, as well as ensure a healthy consumption pattern of the population if coupled with the reasonable prices
The recovery from the prolonged economic recession, in which Russia finds itself ever since 2014, is impossible without the growth of the real income of the population, which ensures about 45-50% of the aggregate demand for the products and services of the national GDP
Summary
The food retail industry is one of the most important sectors of national reproduction, since it ascertains the national food safety. The main conclusion, based on the results of that research, was that despite the serious slump, caused by the numerous external (such as sanctions etc.) and internal (such as the decrease in the real income of the population etc.) reasons, the food retail both in Russia as a whole and in its biggest megalopolises still retains its importance as one of the drivers for the possible stable development rates of the national economy Both the country as a whole and its capitals was undergoing the continued process of concentration and centralization of the food retail market. The analysis of the situation in Moscow and Russia as a whole, proved our presupposed hypothesis that even despite the leading positions of the major retail chains both in the country and its capital, this market leans more toward the monopolistic competition, than an oligopoly, “blurred” [3]
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