RETAIL BUSINESS MODELS: ADAPTATION TO NEW CHALLENGES

Abstract

Background. The retail sector in Ukraine is in crisis due to COVID-19. New risks and challenges have emerged that have put at risk the functioning of the trading industry. Therefore, there is a need to find ways to adapt and transform business models in retail to new, crisis conditions. Analysis of recent researches and publications. Peculiarities of trade business functio­ning in conditions of uncertainty, risks, and crises are actively studied by many scientists and practitioners. However, the issue of changing retail business models in the face of instability, which would allow companies to adapt to today’s challenges, remains insufficiently studied. The aim of the article is to study the process of transformation and adaptation of business models in retail to new economic realities, challenges, and threats associated with the situation around COVID-19. Materials and methods. The information base of this study was scientific work on the adaptation of business to modern conditions of instability and rapid change. The research methodology is based on a system of general scientific and special methods, in particular: analy­sis and synthesis; systematic and integrated approach. Results. The peculiarities of the instability of the modern world according to the VUCA concept, in particular its manifestations related to the COVID-19 pandemic, have been studied. The main threats to business development in the field of retail trade in the current crisis situation have been identified. Changes in business models in retail are proposed, which will help in adapting to difficult economic conditions and maintaining the competitiveness of retail enterprises in the consumer goods market. Conclusion. The necessity of transformational changes of business models in retail in order to adapt them to crisis conditions and ensure the survival of retail enterprises in today’s unstable world is proved.