Development of Russian Retail Market under Conditions of Digitalization

Abstract

Trade plays significant role in the country's economy, as it is the area that provides population with goods and services, has significant impact on the employment level, promotes entrepreneurship and innovation, largely reflects the development of the territory's economy and maintains balance between supply and demand. Trade industry collects a significant part of all tax revenues to the budget, which contributes to ensuring financial stability of the state and creates conditions for social sphere development. It is one of the most dynamically developing sectors of the economy, characterized by rapid development pace and the emergence of new trade formats. The current economic environment has significant impact on Russian retail, leading to its transformation. Inflation, key interest rates, sanctions, and changing consumer preferences are becoming the determining factors. These elements shape market dynamics, current trends, and create obstacles for companies operating in this field. Russian retail trade is under constant influence of technological progress. Artificial intelligence tools and automated algorithms are becoming crucial in the processes of inventory management, pricing, and individualization of marketing offers to the customers. Retail chains are constantly transforming, adapting to changing consumer demands, striving to compete not only in the field of pricing, but also in the direction of attractiveness increase of their offers and increasing turnover by saving customers time, convenience, wide range of products and more intense shopping process. Despite the numerous challenges faced by Russian retail sector, it is not only adapting to changing circumstances, but also showing steady growth.