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34FINANCIAL PREREQUISITES FOR THE INNOVATIVE DEVELOPMENT OF RETAIL
COMPANIES IN UKRAINE
Proskokova A.
Doctoral Student, Department of Business Economics and Entrepreneurship Kyiv National Economic University named after Vadym Hetman
Kyiv, Ukraine
Abstract
The article's main goal is to explore how financial trends in companies' development determine the emergence of innovations. For the analysis, the retail industry was selected as the most dynamic in the Ukrainian economy. At the beginning of the article, the author suggested that different financial trends can be traced in different segments of the industry, provoking different innovations. This is due to various absolute and relative financial indicators, such as: 1) Net sales; 2) EBITDA; 3) Revenue per employee; 4) Assets per employee; 5) Profitability by EBITDA. The analysis of these indicators was carried out for four retail segments: first, FMCG and DIY; secondly, Electronics; third, Fashion Retail; fourth, Drogerie. 24 groups of companies operating in the above mentioned segments were studied in detail. Only industry leaders were analyzed. The main methods for processing the results were: index analysis, trend analysis, and benchmarking. The study covered from 2014 to 2019. The results obtained in the study made it possible to trace financial prerequisites for the innovative development of retail companies. We also came to the conclusion that the best indicators of assets per employee and net sales per employee are shown by companies that are most focused on the digitalization of workplaces.
Keywords. Innovation; FMCG and DIY; Electronics; Fashion Retail; Drogerie.
Statement of problem. On the one hand, the ability to finance innovation depends on the financial condition of the company, and the better it is, the greater the opportunity. On the other hand, financial failures often stimulate management to seek innovations that can fix their situation. There is a mutual theoretical connection, which is important to find and trace in practice. So, the article's main goal is to explore how financial trends in companies' development determine the emergence of innovations. We suggest that different financial trends can be traced in different industry segments, provoking different innovations.
Latest scientific progress and publications review. Lead western and national experts carried out a lot of researches about innovation development in the retail sector. Among them, we could especially highlight V. Kumar, R. Srivastava (2020) [4], Pantano, E., Vannucci, V.(2019) [5], Cristinel V.; Cercel M. (2015) [3], Fedulova L.I. (2016) [8].
As we are looking into dynamics and new perspectives of retail innovation adoption in Ukraine and other countries works Albors-Garrigos J. (2020) [1], Rodriguez M., Paredes F., Gaofeng Yi (2016) [6], Bezus A., Shevchun M., Bezus P (2019) [2] shows the latest analysis of innovation growth related to different retail sectors.
Results of research. Trade is a driver of economic growth, a guarantee of the national market's stability, and a deactivator of threats and risks to countries' economic security.
It is important to note that chain retailers are the locomotives of the industry's development since a high concentration of trading capital strengthens their market positions. As a result, chain retailers receive much
more value and investment compared to local one-off retailers. And that is precisely why chain retail is becoming the epicenter of development and implementation of innovations, testing of technological and non-technological novelties in practice. Thanks to its dynamics and concentration of financial resources that retail changes its face every year in working with the consumer's experience, his habits increase the retail network's efficiency.
The research of financial results and benchmarks of innovative development in retail sector companies will determine retail turnover dynamics and physical turnover index by groups of goods. It is important to note that retail turnover indicates the total amount of retail relations between all participants in economic relations. The indicator of retail turnover of legal entities includes enterprises whose main activity is retail trade. Of course, our focus will be on legal entities, mainly engaged in retail, because they are innovative culture drivers in this sector.
According to Table 1, retail turnover after the crisis of 2014-2015 tended to almost stable growth in the range of 4-11% annually. However, the commodity structure of retail trade in the studied years had ambiguous dynamics. The index of physical turnover, calculated according to the methodology of Derzhkomstat, shows the real growth rate in the reporting year compared to the previous year, besides in 2019, it also showed a significant gap. The index of sold non-food products was 9,8 percentage points higher than a similar growth rate of food sales. Unlike the previous year, 2018, when the gap was almost the same, but vice versa.
Table 1
Retail turnover in Ukraine, 2014-2019_
Indicator Year
2014 2015 2016 2017 2018 2019
Retail turnover, UAH million 901 923.7 1 018 778.2 1 175 319.2 815 344.3 930 629.2 1 094 045.8
The index of physical turnover, % 91.1 79.3 104.3 106.5 106.2 110.3
Retail turnover (legal entities), UAH million 438 342.7 477 966.6 555 975.4 586 330.1 668 369.6 793 479.2
food products 170 174 200 236 227 902 233 204.1 289 695.9 336 587.9
non-food products 257 287 287 322 328 073 353 126.0 378 673.7 456 891.3
The index of physical turnover (legal entities), % 90.0 79.0 104.5 106.0 105.8 111.4
food products 95.9 82.4 101.5 105.5 111.2 105.8
non-food products 84.1 78.7 106.5 106.4 102.1 115.6
Source: Ukraine State Statistics Committee [7]
Compared to 2019, in 2020, the structural dynamics of retail trade will look different. Due to the global economic crisis caused by COVID19, non-food product sales in the first half of 2020 had fallen by almost a half, which will slow down innovation processes among companies engaged in selling non-food products.
Because of the multi-sectoral retail structure, to cover, analyze, and summarize the sales results of all formats and areas is not appropriate and indicative. In this article, we will focus on retailers of two main sectors: FMCG and fashion retail. Based on the analytical information, we'll also compare the approaches and directions of innovation implementation in these two
groups of enterprises.
FMCG (fast-moving consumer goods) companies include sellers of fast-moving goods with a short life cycle, such as food, hygiene products, home staff, etc. The most powerful companies in the FMCG market are retail operators. In Ukraine, there are currently several national and international operators, whose market share is about 95% of product retail, these companies are "ATB," "Fozzy group," "Metro cash & carry," "Novus," "Auchan Holding," "Tavria V." The structure of trade networks in the Ukrainian FMCG-market by net income and total trading area at the end of 2019 is as follows (Fig. 1).
Auchan
Novus
Tavria-V
Metro cash&carry
Fozzy Group
Metro cash&carry; 17417
543 I
Fozzy Group; 77713
ATB
455
ATB; 85729
1 10 100 1000 10000 100000
■ Total retail space of the network 12.2019, thousand square meters ■ Net sales income, UAH million
Figure 1. Ukrainian FMCG-operators by net income and total trade space, 2019 Sources: Ukraine State Statistics Committee [7] and [9]
As we can see, fluctuations in the total net income and retail space among the TOP6 food retailers in the country are quite significant. The largest product network in Ukraine ATB is ten times higher than the last
company's net annual income in the "TOP-six," Tavria-V (Fig.2. and Fig.3).
NOVUS; TAVRIIA-10 960 439
AUCHAN; 14 187 056
METRO; 19 780 504
960 439
ALLO; 4 934 41 1
EPICENT
R; 50 728 3
FMCG & DIY
ATB; 104 910 34
ELDORAD O;...
COMFY
13 643 2 02
\
Fozzy Group; 86 590 073
/
ELECTRONICS
1
ROZETKA: 12 192 292
FOXTROT
3
COLINS; 1 304 359
ARGO; 216 505
ADIDAS; 1 848 828
INDITEX; 4 676 981
lc FASHION RETAIL
WAIKIKI; 2 250 145
145
1
SPORTMA
STER; 2 316 396
RESERVE..
SHIK I
KOSMO; BLYSK;
1 346 701 648 594
>STO...
DROGERIE ■
PROSTO...
WATSON S;
3 282 813
EVA; 12 861 069
Figure 2. - Net sales of leading Ukrainian retailers by retail sectors, 2019, ths UAH Source: Prepared by the author based on the data of companies
120 000 000 100 000 000 80 000 000 60 000 000 40 000 000 20 000 000
FMCG & DIY
2014 2015 2016 2017 2018 2019
TOB "ATE-MAPKET" 32 453 366 38 605 219 48 376 277 66 296 598 85 728 719 104 910 343
^^^"Fozzy Group 35 830 754 45 260 567 47 743 365 60 658 059 77 713 110 86 590 073
EPICENTR 21 982 801 25 994 471 32 017 186 38 287 202 46 486 626 50 728 327
METRO 8 074 895 10 173 616 11 821 563 14 470 631 17 417 034 19 780 504
AUCHAN 6 666 495 8 864 595 9 712 932 11 342 461 15 474 487 14 187 056
NOVUS 3 250 995 4 323 312 5 593 047 7 309 290 9 096 546 10 960 439
TAVRIIA-V 5 341 787 6 326 579 6 768 457 7 256 902 8 494 612 9 083 086
LEROY MERLIN 1 050 130 1 139 754 1 139 057 1 308 213 1 683 599 0
16 000 000 14 000 000 12 000 000 10 000 000 8 000 000 6 000 000 4 000 000 2 000 000 0
ELECTRONICS
2014 2015 2016 2017 2018 2019
COMFY 5 277 384 4 315 010 6 002 013 9 154 558 12 162 584 13 643 202
FOXTROT 7 116 502 6 550 677 7587 813 9 385 834 12 187 711 13 081 521
ROZETKA 1 240 182 2 905414 4 841 591 5 999 913 8517 344 12 192 292
ELDORADO 6 457 652 6094 815 6 653 431 7 824 489 9 722 438 9 669 886
ALLO 1 806 151 2 340 685 2 188 246 2 417 073 3 167 530 4 934 411
2014 2015 2016 2017 2018 2019
-INDITEX 1 493 741 2 122 082 2 687 371 3 350 088 3 942 402 4 676 981
-RESERVED 727 317 1 111 115 1 462 770 1 973 888 2 578 232 3 186 080
-SPORTMASTER 1 280 595 1 319 832 1 393 532 1 690 029 2 049 192 2 316 396
-LC WAIKIKI 85 716 196 246 483 548 975 970 1 596 868 2 250 145
-ADIDAS 1 387 862 1 274 488 1 439 922 1 497 225 1 621 942 1 848 828
-COLINS 573 724 686 559 879 786 1 057 403 1 219 015 1 304 359
-ARGO 221 823 202 830 194 310 199 122 225 261 216 505
15 000 000 10 000 000 5 000 000 0
DROGERIE
2014 2015 2016 2017 2018 2019
-EVA 2 736 510 3 863 306 4 844 170 6 600 056 10 067 380 12 861 069
-WATSONS 2 184 459 2 757 724 3 066 152 3 370 302 3 577 702 3282 813
-PROSTOR 703 833 1 033 435 1 482 378 1 901 651 2 293 860 3 204 541
-KOSMO 1 140 532 1 433 991 1 525 299 1 560 501 1 849 751 1 346 701
-SHIK I BLYSK 68 471 156 507 357 536 463 157 557 433 648 594
Figure 3. - Comparative dynamics of net sales in 4 main retail sectors 2014-2019, ths UAH Source: Prepared by the author based on the data of companies
The biggest retailers are in FMCG & DIY sector. The absolute leader is ATB, which has the widest chain of stores in Ukraine. This is both a consequence and a reason for innovation.
The main innovation that ensures the company's effective development is the business model. After an episodic experiment with a "hard" discounter in the early stages of its development, the company settled on a single format, which has been adhering to all these
years - a "soft" discounter with a democratic pricing policy. By adapting the conceptual features of such retail giants as Lidl and Aldi to the local market, carefully adjusting the efficiency of all its divisions (and especially interaction with suppliers), constantly optimizing its business processes and strategies, ATB outstripped most competitors for many years, and the effect the achieved scale made its position even more unshakable.
ATB penetrates in the smallest towns of the country. By the end of 2019, the ATB is present in 24 regions of Ukraine (not including the Autonomous Republic of Crimea). Besides this, only Fozzy Group has full coverage of the country's entire territory from the food retailers. It is not the first year that Fozzy Group has been replenishing Ukrainian cities with conceptual Silpo supermarkets. Through creativity, this retailer has learned how to distinguish itself favorably from competitors. So, each new supermarket has its own theme in design, equipment, and expositions. For example, the newly opened Silpo in Dnipro has the theme of "inter-galactic ship." The design of this store is inspired by science fiction and travel on spaceships.
In general, by the end of 2019, Silpo retail chain consisted of 261 supermarkets, where 52 stores have a thematic design.
To update the technical base and adopt innovative solutions in the operation cycle, the Fozzy Group has been approved a loan of $ 60 million from the European
All sectors are developing, and show positive dynamics in 2014-2019. Draws attention to Electronics sector. Unlike all other sectors, it did not "collapse" in 2014-2015, but, on the contrary, had a positive trend. The reason for this was the fact of the mass purchase of electronics and household appliances in the annexed Crimea when local residents tried to get rid of the cash Ukrainian hryvnia before the start of the "ruble zone" by Russia.
With an almost linear function, we can describe the dynamics of companies' net income (Fig. 3 and Fig.
The finances will primarily be directed to improving the efficiency in using energy and resources, particularly through the inculcation of CFC-free cooling, efficient ventilation, heating, lighting, and the use of modern technologies for waste management. The project also envisages expanding the Fozzy Group supermarket
chain's presence in regions with limited food retail supply.
The COVID19 epidemic has pushed many traditional retail chains, including Silpo, to open their own online stores. For instance, Silpo online store was opened on April 8, 2020, and the first time after the launch, it looked the most elaborate and convenient for customers compared to similar sites by ATB and Auchan.
Also, the Fozzy Group company takes into account environmental problems. For example, in November 2020, a new Silpo supermarket opened near Kyiv uses energy exclusively from renewable sources. Also, this is the first supermarket in Ukraine that runs
4). In the Drogerie sector, the clear leader, Eve, is seeing exponential growth. Also, Prostor grows rather quickly and aggressively. In 2020, the merger of the companies Cosmo and Prostor took place, which also characterizes the Drogerie sector's trend towards consolidation.
Benchmarking in Fig. 4 shows that ATB, as a representative of the FMCG sector, is an absolute leader, and its gap from representatives of other sectors is only increasing every year.
We can see the growth of the Fashion retail leader - Intex, but in comparison with representatives of other
Bank for Reconstruction and Development (EBRD). on natural CO2 refrigerant.
120 000 000 100 000 000 80 000 000 60 000 000 40 000 000 20 000 000 0
ATB (FMCG & DIY) COMFY (ELECTRONICS) INDITEX (FASHION RETAIL) EVA (DROGERIE)
2014 2015 2016 2017 2018 2019
32 453 366 38 605 219 48 376 277 66 296 598 85 728 719 104 910 343
5 277 384 4 315 010 6 002 013 9 154 558 12 162 584 13 643 202
1 493 741 2 122 082 2 687 371 3 350 088 3 942 402 4 676 981
2 736 510 3 863 306 4 844 170 6 600 056 10 067 380 12 861 069
Figure 4. - Benchmarking of the biggest representatives of in 4 main retail sectors by net sales, ths UAH Source: Prepared by the author based on the data of companies
sectors, its growth seems insignificant.
Noteworthy is that the Drogerie sector leader, Eva, almost caught up with the Electronics sector leader -Comfi.
EBITDA trends differ from net sales (Fig. 5). Comparatively higher profitability can be seen in the Drogerie sector compared to electronics. EBITDA outsiders - fashion retail. The largest company in this sector - Index - has a rather low profit (compared with its net sales).
There is a clear growth in EBITDA in the Drogerie sector. The most dynamic representative of this sector is EVA.
EVA opened 219 new stores and showed an increase in turnover of more than 50% compared to 2018,
and this result was achieved primarily due to the availability of efficient logistics (both warehouse and transport), as well as due to the opening of new reduced format shops in small towns.
To ensure efficient logistics in the EVA network, two sorting centers, and four cross-docking warehouses are used (in Vinnitsa, Nikolaev, Rovno, and Kharkov). The network also has three distribution centers (DC). The largest DC is located in Dnipro and serves 436 stores, the DC in Brovary - 407 stores. The recently opened DC in Lviv already serves 143 stores.
The EVA chain strategy is based on maintaining the dynamics of the chain's growth (it is planned to open about 150 new stores in 2020-2021), as well as to develop a new format in test mode - EVA Beauty Lab.
FMCG & DIY
Electronics
ROZETKA ; 64 622
COMFY; 283 407
5 000 000
10 000 000
15 000 000 0
200 000 400 000 600 000 800 000 1 000 000
Fashion Retail
Drogerie
SHIK I BLYSK; 5 233
I
KOSMO; 41 636
PROSTOR; 415 045
WATSONS; 288 072
INDITEX; 1 200
0
1 500 000
EVA Beauty Lab has differences from the traditional EVA store, so it does not contain household chemicals, products are presented exclusively in the beauty category, a free makeup option is available, and the customer can test products on skin and hair. For this purpose, special zones with consultants have been allocated.
At the end of the second quarter of 2020, the EVA.UA online store has become one of the leaders in
online sales within the Drogerie sector in Ukraine.
The triple increase in the number of calls to the EVA.UA online store during this period was the result not only of quarantine but of all the work that the company carried out to improve the quality of service, increase the range of the online store, and daily efforts to ensure that network customers always receive the best offers.
12 000 000
10 000 000
8 000 000
6 000 000
4 000 000
2 000 000
-2 000 000
2014
2 015
2016
2 017
2 018
2 019
■ATB
■Fozzy Group EPICENTR METRO AUCHAN NOVUS TAVRIIA-V LEROY MERLIN COMFY FOXTROT ROZETKA ELDORADO ALLO INDITEX RESERVED SPORTMASTER LC WAIKIKI ADIDAS COLINS ARGO EVA
WATSONS PROSTOR KOSMO SHIK I BLYSK
-4 000 000 _
Figure 6. - Comparative dynamics of EBITDA of retail companies, 2014-2019, ths UAH Source: Prepared by the author based on the data of companies
0
Attention is drawn to the arrow-shaped dynamics of the growth of ATB and Fozzie (Fig. 6). Epicenter has consistently high growth rates. Since 2017, we have seen a positive growth trend for Metro. Also, in 20182019, there is a positive trend in Inditex and Eva's growth rates.
The main reason for the growing productivity is the shift in online sales. Digitalization is the main innovation that has allowed fashion retail to increase net sales per 1 employee (Fig.7) dramatically. This sector shows unambiguous growth from 2014 to 2019.
ATB Fozzy Group EPICENTR METRO AUCHAN NOVUS TAVRIIA-V LEROY MERLIN P COMFY FOXTROT ELDORADO ALLO INDITEX RESERVED SPORTMASTER LC WAIKIKI ADIDAS COLINS ARGO EVA WATSONS PROSTOR KOSMO SHIK I BLYSK
NET SALES PER 1 EMPLOYEE
0 1 000 2 000 3 000 4 000 5 000 -■ 2 130
ths UAH per capita
6 000 7 000
998 849 -940
1 684 1 764
2 197
6 181
1 644
2 298
1 419 1 777 1 483
2 146
3 202
4 176
2 830 3 020 2 520
3 897
2014 12019
2 114
1 447
700
4 ...
Figure 7. - Comparison of the net sales per 1 employee in Ukrainian retail, 2014 vs. 2019, ths UAH Source: Prepared by the author based on the data of companies
We see companies across all industries actively increasing their return on capital (Fig 8). In fashion retail, there has been a particularly noticeable growth in assets per employee. This is due to innovations.
2 5ОО 2 ООО 1 5ОО 1 ООО
FMCG & DIY
1 981 1 4421 42
484 686 567
SCO 140 24
48 242
1 331
1 474
1 CSS
375
317 ■
1 ccc
I
41 1У
2 5ОО
2 000
1 5ОО
1 000
SCO
4°'
Fashion Retail
2 000 1 768 1 845 1 500
1 ООО 7C1 SCO C
I
S38
168S
1 483
1 471
fJssSS/
sr
Electronics
1 922
1 181
1C88
1 114
COMFY FOXTROT ELDORADO ALLO
2 000
1 5ОО
1 000
SCC
Drogerie
18CS
1 283
64S 314
611
483
SS7
313
4C
21S ■
EVA WATSONS PROSTOR KOSMO SHIK I
BLYSK
Figure 8. - Assets per employee of main Ukrainian retailers by retail sectors, 2014 vs. 2019, ths UAH Source: Prepared by the author based on the data of companies
With the unprecedented drop in fashion retailers' sales, many global apparel brands - from luxury goods to fast fashion - are opening their medical device factories due to a shortage of medical staff and weak consumer demand. For example, the Spanish group Inditex has re-equipped its lines to produce medical devices (masks/workwear), including orders from other companies.
Nevertheless, in the second quarter, the company revenue, among whose brands are Zara, Pull & Bear, Massimo Dutti, Bershka, Oysho, decreased by 44%, to 3.3 billion euros.
In this regard, Inditex announced plans to increase online sales: if in 2019, online accounted for about 14% of all company sales, then by 2022, the share of online sales should reach 25%. In the next few years, the company will invest 2.7 billion euros in various technological solutions and the promotion of e-commerce.
The most crisis-resistant in 2014 were the companies in the Electronics sector. And this is due to the annexation of Crimea, as mentioned above. However, it is worth dwelling on another outstanding representative of this sector, namely Rozetka (Fig. 9).
C
C
C
C
20% 15% 10%
EPICENTR; 17%
12%
EPICENTR;
-8%
Fozzy
5% Group; 1%
0%
-5%
-10%
-15%
-20%
-25%
-30% 80%
60%
40%
20%
0%
-20%
-40%
TAVRIIA-V; 6%
0%
ATB; 0%
2014
AUCHAN; -2%
AUCHAN; 10%
10%TAVRIIA-V; 8%
8%
ALLO; 10%
2 019
foxtroeTldor
; 7% 8%
NOVUS; 15%
Fozzy Group; 11%
METRO; 12%
METRO; -25%
INDITEX; 71%
ARGO; 23%
ADIDAS;
19% COLINS; 17%
INDITEX; _
i II
ADIDAS; E SERVED 54% ; 47%
COLINS; 25%
SPORTMAS ; -4%
FM SPORT
014" ■
RGO 16%
RESERVED ; -24%
SPORTMAS TER; 43%
6% 4% 2% 0%
25% 20% 15% 10% 5% 0% -5% -10% -15%
FOXTROT ; 5%
ELDORAD O; 5%
COMFY; 1%
; 3% COMFY; 2%
)ZET1 0%
I
2014
WATSONS ; 22%
ROZET1 1%
2 019
WATSONS
EVA: 5%
SHIK I BLYSK; 2%
EVA; 14%
PROSTOR; 17%
KOSMO; 5%
2 019 SHIK i
BLYSK; 1%
KOSMO; -11%
Figure 9. - Profitability by EBITDA of main Ukrainian retailers by retail sectors, 2014 vs 2019, % Source: Prepared by the author based on the data of companies
12%
Rozetka has evolved into a sales platform for other retailers. According to EBITDA, we see quite low profitability indicators of the company due to large investments. But it is also a promise of future growth for the company based on platform innovation.
March 2020, online retailer Rozetka, together with the delivery operator "Nova Poshta" and "ATB" supermarket chain, launched a food delivery service. Thus, Rozetka has rapidly added food products to its assortment, following consumer requests during the quarantine period. According to their plan, no more than 3 -5 hours should pass from the moment of ordering to the moment of delivery.
In turn, with another postal operator - Ukrposhta, Rozetka began actively open partner post offices. By the end of 2020, it was planned to open over 130 these type of offices. In this case, Rozetka plans to increase customer loyalty because the main advantage of such post offices is free delivery of goods purchased on Ro-zetka.
In addition, making efforts to be closer to the buyer, Rozetka launched a competition for the opening
of Rozetka's points of delivery in different cities and regions. The opening of such delivery points will take place under a franchise agreement, while the store takes over the logistics for delivering goods to the point, training new employees, and providing access to the Octopus software package, which is used in Rozetka.
Conclusions. The results obtained in the study made it possible to trace financial prerequisites for the innovative development of retail companies:
FMG and DIY. The COVID19 epidemic and financial issues have pushed Silpo (Fozzy Group) to open its online stores. Fozzy Group company takes into account environmental problems (for example, Silpo uses energy exclusively from renewable sources; this is the first supermarket in Ukraine that runs on natural CO2 refrigerant.) Also, Silpo is improving the efficiency in using energy and resources, particularly through the inculcation of CFC-free cooling, efficient ventilation, heating, lighting, and the use of modern technologies for waste management.
Electronics. Financial indicators showed not the best profitability in 2019. For the online retail leader
Rozetka, this is due to large-scale investments in platform innovations. Rozetka, together with the delivery operator "Nova Poshta" and "ATB" supermarket chain, launched a food delivery service. According to their plan, no more than 3-5 hours should pass from the moment of ordering to the moment of delivery. Rozetka began actively open partner post offices. In addition, making efforts to be closer to the buyer, Rozetka launched a competition for the opening of Rozetka's points of delivery in different cities and regions; the start of such delivery points will take place under a franchise agreement, while the store takes over the logistics for delivering goods to the point, training new employees, and providing access to the Octopus software package, which is used in Rozetka.
Drogerie. The financial analysis clearly points to the leader of Ukraine in this segment, Eva company. EVA b 2019 opened 219 new stores and showed an increase in turnover of more than 50% compared to 2018. To ensure efficient logistics in the EVA network, two sorting centers, and four cross-docking warehouses are used. The strategy of the EVA chain is based on a new format - EVA Beauty Lab. It has differences from the traditional EVA store, so it does not contain household chemicals, products are presented exclusively in the beauty category, a free makeup option is available, and the customer can test products on skin and hair. For this purpose, special zones with consultants have been allocated.
Fashion. According to financial analysis, the largest player in the Ukrainian market in this segment is In-ditex. With the unprecedented drop in fashion retailers' sales, many global apparel brands - from luxury goods to fast fashion - are opening their medical device factories due to a shortage of medical staff and weak consumer demand. For example, the Spanish group Inditex has re-equipped its lines for the production of medical devices (masks/workwear), including the orders from other companies. Inditex announced plans to increase online sales. In the next few years, the company will
invest in various technological solutions and the promotion of e-commerce.
We also concluded that the best indicators of assets per employee and net sales per employee are shown by companies that are most focused on workplace dig-italization.
References
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48, 815-825
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