TRENDS AND PROBLEMS OF GLOBAL DEVELOPMENT OF RETAIL NETWORKS


Keywords: retail networks, retail trade, unfair trading practices, competition

Abstract

Topicality. Unlike individual stores, retail networks have significant market power. They use it by redistributing in their favor part of the value added created in other sectors. This negatively affects the competitiveness of enterprises and makes it necessary to use tools of selective regulation of market processes by the state. It is necessary to study the existing world experience in detail in order to use it in Ukraine.
Aim and tasks. The aim of the article is to substantiate the need and ways of implementing state regulation of the relationship between domestic trade networks and manufacturers based on the analysis of modern trends in the development of retail networks in the world, the experience of EU countries.
Research results. Trends in global development of retail trade networks, positive and negative consequences of their dynamic growth have been studied. The causes, essence and consequences of unfair trade practices in the relationship between retail networks and their suppliers have been clarified. The experience of state regulation of the activities of retail networks existing in the EU countries is analyzed. It was determined which measures were ineffective, and which contributed to the solution of existing problems. Special attention is paid to the essence of the EU Directive 2019/633 оn unfair trade practices in relationships between enterprises in the agricultural and food supply chain, which prohibits a number of such practices, and its implementation in the member states of the EU. Unfair trade practices used by retail networks in Ukraine have been identified. It was found that the scale of abuse of domestic networks is greater compared to some other countries.
Conclusion. The recovery of Ukraine's economy after the war will significantly accelerate if it is possible to balance the interests of trade networks and suppliers. However, in Ukraine, unlike most European countries, there are no legislative acts aimed at eliminating abuses by trade networks. Taking into account the experience of the EU, it is expedient to introduce state regulation of relations between trade networks and suppliers in Ukraine. The adoption of the relevant law will help increase the competitiveness of domestic enterprises and raise the standard of living of the population.

Author Biographies

B.V. BURKYNSKYI

Academician of the National Academy of Sciences of Ukraine,
Dr. Econ. Sciences, Professor
Director
Institute of Market and Economic&Ecological Research of the
National Academy of Sciences of Ukraine
Frantsuzskiy Boulevard, 29, Odesa, Ukraine, 65044

A.V. SHCHERBAK

PhD (Economics)
Senior researcher
Institute of Market and Economic&Ecological Research of the
National Academy of Sciences of Ukraine
Frantsuzskiy Boulevard, 29, Odesa, Ukraine, 65044

References

1. Burkynskyi, B.,V. & Nikishina, O.,V. (Eds.) (2021) Organizacijno-ekonomichni mehanizmy formuvannja efektyvnoi' logistyky tovarnyh rynkiv [Organizational and economic mechanisms for the formation of effective logistics of commodity markets] - Odesa: IMPEER NASU. [in Ukrainian].
2. Burkynskyi, B.,V. & Nikishina, O.,V. (Eds.) (2022) Instytucional'ni mehanizmy reguljuvannja rozvytku logistyky tovarnyh rynkiv: monografija [Institutional mechanisms for regulating the development of the logistics of commodity markets: a monograph]. – Odesa: IMPEER NASU. DOI: https://doi.org/10.31520/978-966-02-9922-1 [in Ukrainian].
3. B2B platform (2011). Vertical relationships in the Food Supply Chain: Principles of Good Practice, 29 November 2011. Retrived from: https://supplychaininitiative.eu/sites/default/files/b2b_principles_of_good_ practice_in_the_food_supply_chain.pdf
4. Chopenko, V. (2015) Nezgovirlyvyj rytejl [Non-negotiable retail]. Dzerkalo tyzhnja. №4. Retrived from: https://zn.ua/ukr/business/nezgovirliviy-riteyl-_.html. [in Ukrainian].
5. Deloitte (2022). Global Powers of Retailing. Retrived from: https://www2.deloitte.com/global/en/pages/consumer-business/articles/global-powers-of-retailing.htm
6. European Parliament and Council (2019). Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain. Official Journal of the European Union. L 111/59. 25.4.2019
7. European Parliament and Council (2011). Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions. Official Journal of the European Union. L 48. 23.02.2011
8. European Commission (2013). Green Paper. Unfair trading practices in the business-to-business food and non-food supply chain in Europe. Brussels, 31.01.2013. COM(2013)37 Retrived from: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A52013DC0037
9. European Commission (2014). European Commission Communication. Tackling unfair trading practices (UTPs) in the business-to-business food supply chain. Strasbourg, 15.07.2014. COM(2014)472. Retrived from :https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52014DC0472
10. European Commission (2016). Report to the European Parliament and the Council on unfair business-to-business trading practices in the food supply chain, Brussels, 29.1.2016 COM(2016)32. Retrived from: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016DC0032&rid=10
11. European Commission (2021). Report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the state of the transposition and implementation of Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain. Brussels, 27.10.2021 COM(2021) 652 Retrived from: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52021DC0652&from=EN
12. European Parliament (2016). Motion for a European Parliament resolutionon unfair trading practices in the food supply chain. Retrived from: https://www.europarl.europa.eu/doceo/document/A-8-2016-0173_EN.html
13. Lisitsa, V. (2016) Derzhavne reguljuvannja dijal'nosti rozdribnyh torgovel'nyh merezh v Ukrai'ni v konteksti svitovogo dosvidu. [State regulation of activity of retail trade networks in Ukraine in the context of world experience]. Problemy i perspektyvy ekonomiky ta upravlinnja. №3(7), рр.79-89. [in Ukrainian].
14. Nikishina, O.,V. (2016) Theoretical basis the development of system vertically related markets of grain and its products processing (integration approach). Economics of the food industry. Vol. 8. Issue 1, pp. 3-13. [in Ukrainian].
15. Porter, M. (I980) Competitive strategy: techniques for analyzing industries and competitors. New York: Free Press
16. Radaev, V. (Ed.) (2011). Gosudarstvennoe regulirovanie dejatel'nosti torgovyh setej: osnovy i protivorechija. [State regulation of retail chains: basics and contradictions]. Moskva: Izd. dom Vysshej shkoly jekonomiki. [in Russian].

© 2022 The Author(s). Published by IMPEER. This is an Open Access article under the CC BY 4.0 license.
Published
2022-09-20
How to Cite
BURKYNSKYI, B., & SHCHERBAK, A. (2022). TRENDS AND PROBLEMS OF GLOBAL DEVELOPMENT OF RETAIL NETWORKS. Economic Innovations, 24(3(84), 7-16. https://doi.org/https://doi.org/10.31520/ei.2022.24.3(84).7-16