Problems of Competitiveness of Small Forms of Food Retail in Lviv

Abstract

The article discusses the defining competitive advantages of food retail stores. It is defined that the competitive advantages that determine the level of competitiveness of production and trade enterprises do differ. The main competitive advantages of trading enterprises are their location, product range, pricing policy and quality of service. As a result of the analysis of the trade infrastructure of the city of Lviv, it was concluded that there were problems in shaping the competitiveness of small forms of retail trade in food products, which are associated with the active development of national retail chains and the emergence of international trade operators in the market. The classification of stores by the signs of the size and territory of the girth was carried out. The peculiarities of their competitive advantages are determined. It is identified that the emergence of networks of the latest large formats of stores with the possibility of purchasing goods at lower prices was a threat to the functioning of traditional stores «close to home» and the reason for the decrease in their number. A comparative analysis of advantages and disadvantages of small forms of retail and large retail is carried out. The main competitive advantages of small retail stores are the proximity of the location to the buyer and trusting relationships with regular customers. The price, product range and possibilities of implementing loyalty programs are identified as the main strategic competitive advantages of large store formats. The emphasis on these advantages makes it possible to effectively manage the competitiveness of retail.

Keywords

• competitiveness
• competitive advantage
• grocery retail
• types of retail trade
• traditional store «close to home»
• supermarket
• hypermarket
• product range