Crisis Management in Retail Sector. Cases of Russian Retail Chains

Abstract :

Research in the field of crisis management in the retail sector is an interdisciplinary endeavour at the intersection of crisis management, marketing, logistics and finance. The current study is aimed at identifying an optimal set of anti-crisis measures allowing retailers to weather crisis and develop sustainably in difficult market conditions. Presently, chains are increasing their share of retail market in Russia. It is forecasted that they will account for 30% of total retail turnover by 2018. The paper provides analysis of anti-crisis measures carried out by Russian retail chains in 2014-2017. In crisis conditions all leading Russian retailers implemented organic growth and multi-format development strategies, and at the same time developed long-term partnership programs with manufacturers, financial institutions, etc. Such partnerships are instrumental in decreasing operational risks and overcoming downturn. The study outlines the types of synergies which retailers can achieve by concluding long-term partnerships with players from other sectors. Operational, financial, investment, communication and innovation synergies are being discussed. Synergies in supply chain are considered using the example of private labels programs. The paper also analyses vertical integration strategy aimed at securing reliable procurement of products. The current research project provides for subsequent efforts to assess how implementation of partnership programs influences retailers’ effectiveness and performance in crisis environment.