Russian Retail Research Articles

Methods of Estimating Operative Risks in Trade

The article deals with Russian retail trade. Today it is very topical due to our economy digitalization and sanctions introduced by some foreign countries. The authors study methodological approaches to the analysis of operative risks in trade and search for risk estimation models in operations of order shaping for the product range, payment, acquisition, transportation, damage, storage and product sale. The conceptual model of researching operative risks in trade was put forward and methodological substantiation of summarized methods and models was given. They are useful for direct application in estimating operative risks in practice, such as those connected with foreign currency, inflation, interest rate, transportation, damage and loss of products and missed profit. The authors give practical examples of using the groups of formal methods of risk estimation in wholesale operations dealing with purchase and sale of foot ware by big retailers. Practical importance of the research results is connected with the opportunity to use these models for operative risk estimation, which could cut losses and minimize risks, avoid unfavourable economic after-effects in the work of Russian retailers.

Поширеність лубочної книги в українських губерніях XVIII – початку ХХ ст.

Lubok book is considered to be the Russian analogue of the Western folk book (English chapbook, French La Bibliothèque bleue and German Volksbuch) intended for poorly educated and downscale readers. The fact that lubok book is a Russian culture phenomenon justifies the interest in finding out its prevalence in Ukrainian lands as it was lubok book influence that caused Ukrainian readers to became drawn into mass culture of Russian book and in a broader sense – into Russian information space. Although at first Ukrainian provinces were just the territories where Russian lubok printed matter was being sold, later on, pursuit of commercial advantage motivated entrepreneurs to take account of local readers' needs and tastes. The paper describes gradual increase of lubok book occurrence in the printed matter environment of Ukrainian provinces in the 18th – the forepart of the 20th centuries, starting with the situation when Russian-language publications produced by Russian publishers was being distributed by Russian retailers, and until local entrepreneurs mastered that business step-by-step. At first, there appeared Ukrainian publishers in the late 1870's, followed by Ukrainian retailers, and finally towards the close of the 19th century Ukrainian-language lubok book both translated from Russian and original became available with trendy content at that. At the same time printed matter produced by Russian publishers was being specialized. At first, books covering Ukrainian topics appeared, and later on even Ukrainian-language books became available. Eventually in the forepart of the 20th century, Ukrainian intellectuals began to consider lubok book as an intermediary for familiarizing themselves with Ukrainian language and even more broadly – with the Ukrainian national idea. Then lubok stylistics became recognized nationwide and it even was used by the government for ideological influence on population, which most clearly manifested itself with appearance of lubok books on military matters of the Russo-Japanese war and especially the Great War.

Consumer Motivations to Join a Brand Community of Retail Chains in Social Network Sites

Выявлены и изучены мотивы вступления потребителей в бренд-сообщества российских розничных сетей FMCG в социальных сетях (на примере Facebook). Установлено, что такими мотивами являются: лояльность к бренду, практическая и экономическая ценности. Исследование было про-ведено методом опроса, посредством размещения анкеты в сети Интернет. Новизна авторского подхода заключается в выявлении мотивов вступления потребителей в бренд-сообщества розничных сетей на основе теории использования и удовлетворения (uses and gratifications theory). This article is a description of a research of the consumer moti-vations to join brand communities of Russian FMCG retail chains in social network sites (taking Facebook as an example), conducted in March 2019. In recent years, the popularity of so-cial networks among the population has been growing. There-fore, almost all retail networks have their own pages on Face-book, it becomes an urgent task to create brand communities and attract consumers to them. Companies can organize brand com-munities if they understand the motivations for which consumers become members of brand communities. In this regard, the purpose of the study is to identify the motiva-tions to join brand communities of Russian retail networks on Facebook. Despite the existence of several studies in the field of brand communities, little is known about the motivations of members of the brand communities of retail chains that have certain business specifics. This determines the relevance of this study. The originality of the author's approach is in analysis of the motivations of members of the brand communities of retail networks based on the theory of use and gratifications theory. Based on previous research, as well as using the theory of uses and gratifications, the following motivations revealed, according to which consumers become members of brand communities: practical value, social value, social improvement, entertainment, and economic value. The practical value is based on customers obtaining valuable information on the company's page. Social value follows from the relationship that consumers can have among themselves and with the brand. Social improvement has its origins in the need for customers to feel useful to the community. Entertainment is associated with the opportunity to have fun. Economic value is associated with the desire to gain economic benefits from participation in the brand community. This study was conducted by a survey method, the questionnaire was posted on the Internet, customers who are members of the brand community of Russian retail chains on Facebook were interviewed, and 425 people were surveyed. According to the survey, among all the motivations in the first place in im-portance among members of retail network communities on Facebook is practical value, in the second place is brand loyalty, in the third place is economic value, then entertainment, social improvement and social value. After the research, the authors developed recommendations for marketers of retail net-works that allow forming a brand community in social networks effectively.

ANALYSIS OF THE MARKET POSITION AND COMPETITIVENESS OF THE COMPANY X5 RETAIL GROUP

The study contains the results of the competitive analysis of the company X5 Retail Group based on the 2017 year data and is based on Porter five forces analysis. In the course of the work, such aspects of the company’s activities as logistics, opening new points, strategies of promoting and attracting customers were analyzed. The results of the study were consolidated in the SWOT-matrix format for the company, identifying the potential strengths of the company, as well as the risks it may face while maintaining the existing market share or expanding it. The study is relevant due to the ongoing process of the strengthening the X5 Retail Group company in recent years, which is emerging on the leading positions in Russian retail market, and therefore is of interest to specialists in the fields of management, economics and business law.

Effects of Influence of Economic and Technological Development of IT Segments on Digital Transformation of Retail Trade

This paper presents the results of measuring cross-sectoral economic and technological effects, allowing to determine the degree of dependence between the segments that produce digital technologies and implement them. The basis for empirical calculations was the survey data of leaders among Russian IT companies and retail organizations on the current state of digital and business activity. The purpose of the work is to identify the presence and establish the strength of the relationship between these segments in terms of existing localized industry effects, expressed in the transfer of technology from the IT segments to retail. The authors of the work identified and tested several specific hypotheses, the general meaning of which was to suggest that retail trade in the current stage of economic development in Russia is susceptible to emerging trends in the rapidly changing IT services sector that can quickly and efficiently respond to the growth of the IT companies digital activity by increasing investments in digital technologies and increasing the intensity of their application in business processes. In particular, hypotheses were tested regarding the impact of business activity in the IT services segments on the growth of electronic commerce turnover, the use of online marketplaces, Big data technologies, virtual and augmented reality technologies in retail trade organizations, as well as hypotheses suggesting a connection between the development of mobile applications in the IT segments and the use of mobile technologies, expectations regarding the growth of electronic goods turnover in retail organizations. The obtained results confirmed the majority of the hypotheses put forward, thereby supporting the authors' general assumption about the existence of specific effects of the development of the IT segments on intersectoral technological transfers, revealed the existing specifics of penetration and spread of modern technological trends in trade, and also showed that the IT is currently important component in the process of digital transformation of Russian retail trade organizations.

Types of Inter-Firm Relations and Their Comparative Economic Performance: Evidence from Russian Retail Market

Based on economic-sociological, marketing, and strategic management literature, we combine two classifications of inter-firm relations (horizontal and vertical) and propose the original typology of four ideal types of inter-firm exchange. The quantitative prevalence and the comparative economic efficiency of each ideal type are estimated using indicators of sales dynamics, changes in commodity range and competitive positions. The empirical analysis is based on data from a standardized survey of 684 corporate managers (of retailer and supplier firms) operating in Russia in the food and non-food markets conducted by the HSE in 2016. The analysis revealed high prevalence of building intensive inter-firm relations in the supply chain and low prevalence of network connections with competitors. Additionally, the combination of horizontal relationships with competitors and building vertical relationships in accordance with the concept of relationship marketing is associated with the highest rates of economic efficiency.

Determinants of the Investment Policy of Russian Retail

Determinants of the Investment Policy of Russian Retail

The Role of Chains in the Russian Retail Sector

Over the recent 15 years, Russian retail sector has moved from independent stores to chain structures since such trade organization is more competitive due to a single procurement policy, economies of scale, more developed logistics, own distribution centers, greater brand recognition, etc. However, the increase in the market power of retail chains is often considered as a threat for the free market and competition.This work represents an attempt to determine the degree of concentration on the Russian food retail market within the context of economic downfall, as well as the competitiveness of such forms of business organization as retail chains. The goal of the study is to test the research hypothesis that in the context of the Russian economy’s recession some players leave the food retail market, thereby increasing the market concentration, while the market power of retail chains that are more competitive increases. To test the hypothesis of the study, relevant statistical data were analyzed for the period of 2010-2015. The estimation of the monopolization indicators made it possible to make conclusions about the concentration in the industry.The following indicators for the Russian Federation were analyzed: distribution of retail trade turnover by forms of trade; the share of retail trade networks in the formation of retail trade turnover; and the turnovers of major food retailers. The concentration indices were calculated as well. The role of mergers and acquisitions in the retail food market as a factor of increasing the concentration was highlighted herein. The players leaving the market were specified. According to the results of the study, two trends have been identified: The share of retail chains on the retail food market increased and the market concentration in the sector divided by retail chains increased.

Policy of Diversifying Trade Networks in Food Market in Terms of Economic Sanctions and Import Substitution

The trading network, as a progressive form of retail organization, can be characterized by a high degree of competitiveness, an effective management organization, a well-constructed logistics scheme that integrates all the main functions: marketing, purchasing, inventory control, sale and advertising. The sanctions imposed by the West affected not only food buyers, but also retailers, especially those who imported products directly from Western partners. The sanctions imposed by the West affected not only food supplies buyers, but also retailers, especially those who imported products directly from the Western partners. The Russian retail trade networks are gradually adapting to the restrictions, carrying on a policy of diversification by replacing the prohibited imported foods products by the domestic goods. The article examines the mechanism of applying the diversification strategy by the trade networks on the regional food markets. It generally defines coordination of activities of the food products domestic manufacturers and the trade networks with the purpose of providing the population with the qualitative goods.

Environmental disclosure in the annual reports of the Russian retailers

Environmental disclosure in the annual reports of the Russian retailers

Environmental Performance of Retail Trade Companies in Russia

An important condition for a sustainable and balanced development of the Russian economy is to increase the environmental performance of commercial companies, including trade ones. The purpose of the study is to assess the environmental performance of retail trade companies operating in the Russian Federation. The index, calculated based on the data included in their annual reports, taking into account thirteen parameters characterizing various environmental aspects of trading activity, is used to assess the environmental performance of retail trade companies. The results obtained have made it possible to draw the following conclusions: first, in recent years, the environmental performance of Russian retail trade companies has shown the upward trend; secondly, the environmental performance of foreign retail trade companies operating in the Russian Federation is higher than the environmental performance of Russian companies. Despite the positive dynamics, the problem of increasing the environmental performance of retail trade companies remains of significant importance both for individual economic entities and for the entire state. A further increase in the environmental performance of retail trade companies will improve their competitiveness and the resulting social and economic performance, and will also contribute to the formation of a balanced, environmentally oriented model for the development of the Russian economy.

Do High Deposit Interest Rates Signal Bank Default? Evidence from the Russian Retail Deposit Market

In recent years the Russian banking system has witnessed numerous bank license withdrawals. Many of the failed banks had significant volumes of retail deposits in their liabilities, thus, transmitting the default burden to the Deposit Insurance Agency and ultimately to the taxpayers. In their attempt to stay in the market banks may try to attract the depositor funds even more intensively when the failure is not far away. The main assumption of this paper is that banks raise additional funds through inflated deposit interest rates – the overstatement strategy – before leaving the market. We use unique data on Russian bank deposit interest rates for deposits of different maturities in 2015–2016 combined with data about bank fundamentals coming from their financial statements. The results suggest that if a bank offers too generous interest rates for deposits for 180-365 days this can be a signal of a significantly higher probability of license withdrawal in 3 quarters. In their attempt to urgently attract funds when moving closer to default banks assign the highest rates for the longest-term deposits, with the maturity over one year. The interest rates higher than the market average dramatically increase the probability of a bank failure in 2 quarters.

A rise of state activism in a competitive industry: The case of Russian retail trade law of 2009

The paper is aimed at exploring the Russian state return to the highly competitive industry of retail trade by adopting restrictive industry-specific legislation in 2009. We reveal a new precedent model of governance using the liberal rhetoric of the competition protection to justify intervention in interfirm contractual relations. We use survey data collected from 843 retailers and suppliers in 2013 to demonstrate that the new legislation had not achieved the proclaimed goals. The paper concludes that instead of market facilitation, the new state activism leads to the further suppression of business and the subversion of antimonopoly policy.

Depreciating evidence in administrative adjudication: Rules on the sequence to present evidences

The late choice of the type of alleged infringement in administrative investigations, when company (alleged infringer) presents evidence first and then responsible agency decides on the content of infringement on the basis of evidence produced by company has significant incentive effect. This rule demotivates alleged infringers to present evidence under the procedure of administrative inspection in time and as complete as possible. In addition, incentives to provide evidence are limited if the agency has the opportunity to select among different types of alleged infringement and to use evidence presented by company in its favor as evidence of a certain type of alleged infringement. Time sequencing of decisions when the choice of the type of infringement is made just after agency collects evidence from company inevitably results in decisionsof infringement, which company then appeals in the court. The experience of Russian antitrust investigations — with two indicative illustrations (Novolipetsky metallurgical plant case and the case with largest Russian retailers specialized in computers and home electronics) shows the importance for the company of being suspected in certain infringement to decide on the amount of evidence. Incentives to provide evidence are studied through the lens of all-pay auction framework to explaining the effects of procedural rules in administrative enforcement that is inquisitorial in nature, in contrast to adversarial ones. It is shown that prosecutorial bias or asymmetric burden of proof is not necessary to suppress the incentives of the target of investigation to produce evidence.

Category management in Russian retail sphere (case of the Ural Federal District)

The Ural Federal District is one of the leading Russian regions: it has a dynamically developing economy characterized by vigorous competition. One of the ways to enhance companies’ performance in these conditions is category management. This article seeks to evaluate the level of implementation of category management principles in the retail sphere of the Ural region and to identify the main regional features of retail management. The article provides a brief overview of the approaches to defining category management and outlines its key elements. The empirical part of the study concerns with the results of the survey conducted among category managers of nine Ural retailers. The head offices of these retailers are located in Ekaterinburg and the majority of their stores are situated in the Ural Federal District. It was found that although all the respondents are aware of the key principles of category management, not all of them are able to put these principles into practice systematically, mainly due to the policies of their companies, which are often orientated towards gaining quick, short-term profits rather than building balanced long-term strategies. Category managers also often face constraints in their decision-making and lack modern tools for data processing and analysis. The conclusion is made that category management offers Ural retailers a range of opportunities for further development if they choose to invest in modern equipment and personnel training and revise their supplier relationship policies.

Экономия от масштаба на розничном рынке электроэнергии России: об одной естественной и одной неестественной монополии

Экономия от масштаба на розничном рынке электроэнергии России: об одной естественной и одной неестественной монополии

ПРОБЛЕМЫ РАЗВИТИЯ КОНКУРЕНЦИИ НА РОЗНИЧНОМ РЫНКЕ ЭЛЕКТРИЧЕСКОЙ ЭНЕРГИИ РОССИЙСКОЙ ФЕДЕРАЦИИ

The challenge of the development of the retail electricity markets competition in order to improve the efficiency of electric power industry in Russia has considered. The modern Russian retail electricity markets model does not provide the adequate level of competition in retail energy sales sector has revealed. This article studies specific features of the Russian retail electricity markets organization. The level of competition in retail energy sales sector and the competition impact to the retail electricity prices have estimated. The competition prohibiting factors for retail electricity markets have suggested.

Влияние интерпретации антимонопольного законодательства на признание фирм вступившими в молчаливый сговор

The study is devoted to the assessment of the impact of the antitrust laws interpretation on the conviction of tacit collusion. In the first part of the article tacit collusion is explained in terms of game theory and economic theory and then a general approach to proving firms to be guilty of tacit collusion in Russian antitrust legislation is presented. The main part of the work includes analysis of 48 cases content, in which firms of Russian retail fuel market argued in court that they were not guilty of tacit collusion. Based on this analysis, main effects of the antitrust laws interpretation on the conviction of tacit collusion were identified. Author concludes that under certain circumstances the concepts adopted in the Russian legislation make the outcome of the trial depending on the court’s opinion on the interpretation of these concepts and generate a number of unintended systematic effects that may lead to a decrease in public welfare.

The Technical Efficiency of Russian Retail Companies: An Empirical Analysis

This study focuses on the technical efficiency analysis of Russian retail companies over the period 2011–2015. The main objective is to assess technical efficiency and to reveal factors that affect the efficiency and creditworthiness of this important sector of the Russian economy. Efficiency can be considered a basic measure of creditworthiness because it demonstrates management’s ability to maximise its use of resources. Studying the results enables banks to consider creditworthiness and determine whether to provide retailers with funding for future development. The empirical analysis for this article was performed using Data Envelopment Analysis and Stochastic Frontier Analysis methods. Two differing methods can be used to evaluate technical efficiency. The first, SFA, presents a picture of the whole market and formulates general propositions on the creditworthiness of retail companies. The other method, DEA, looks at certain companies and their relative performance in comparison with their competitors. Banks can use a technical efficiency score to monitor the dynamics and potential of each company. In addition to examining tools for evaluating technical efficiency, the study also has practical implications for managers of retail companies in Russia.

Evolution of the types of shopping and spatial organization of retail trade in the post-Soviet metropolis

The relationship of stratification of shopping types, development of certain types of retail facilities, and major macro trends in the spatial organization of the tertiary sector of the city economy is described by with a case of St. Petersburg, one of the leaders and innovators in Russian retail. Shopping periodization from 1989 to 2016 is proposed based on the author’s multiyear field surveys and interviews as well as the above criteria. Six periods are distinguished. The features of the latest, modern stage are described in particular detail taking into account consumer stratification by income groups. The data also argue in a more general discussion about the completion or continuation of social transformation in the post-Soviet metropolis. The data on the different stages and regularities in the development of the spatial organization of retail trade for this innovative leader give grounds to make forecasts for other major cities of Russia.