The Symbiosis of Offline and Digital Retail: Ukrainian Context

Abstract

It is substantiated and scientifically proved that retail is one of the components of the Ukrainian economy in the context of ensuring its sustainable development. The arguments about the determination of the symbiosis of offline and digital retail as one of the alternatives for successful operations in a modern environment with permanent market changes are summarized considering the trend of digitalization. The purposes of the paper are to investigate the landscape and features of digital and offline businesses of retailers, and to justify recommendations for retailers with a trade network for their persistent digital business development in the context of Ukrainian realities. The object of the study is the largest Ukrainian retailers in the food retail segment, which carrying out simultaneous online and offline trade. As part of the study, the analysis of the volumes of online trade in the general structure of Ukraine's trade turnover during 2014–2019 years was carried out. The trends of the Ukrainian online trading market in Europe are identified. The comparative analysis of the spending volume of online retail in Ukraine, Eastern Europe and the world in 2014–2020 years was conducted. Prospects for doing digital business for retailers in Ukraine are substantiated. The features of the online buyers’ activities in the online space are diagnosed. The digital activity of consumers by the types of gadgets and devices in Ukraine and the world is determined. Trends in Ukrainian online retail is interpreted. The development of the digital business of Ukrainian food retailers is analysed. Based on the results of diagnostics of the Ukrainian retailers’ activity in the food retail segment and taking into account current market trends, perspective directions of persistent progressive development of their digital business are determined. Approbation of the recommendations that are provided in the article, is confirmed the feasibility of their usage by online retailers in Ukraine to maximize the satisfaction of heterogeneous requests, needs and preferences of online buyers, as well as the rapid expansion of new market segments. Key words: digitalization, digital business, digital transformation, offline business, retail.