IS THE EMERGENCE OF ONLINE TRADING ORGANIZATIONS A THREAT TO TRADITIONAL RETAIL ORGANIZATIONS? (A CASE STUDY OF PRIMORSKY KRAI)

Currently, the online retail market in Russia is rapidly developing, and its growth poses a threat to traditional retail organizations’ positions in the market. Existing retail organizations located in major Russian cities are implementing various strategies to ensure differentiated competitive advantages in their fight against online retailers. However, a scientific question arises regarding whether the competition between these two groups of retail organizations manifests itself in the same way across Russia. In this study, the Primorsky Krai, located in the Russian Far East, has been chosen as the subject of investigation to empirically analyze competitive interactions between retail organizations in the region and to compare it with the situation in larger cities. In this paper, the impact of the increase in retail organizations registered under the main code 47.19 OKVED 2 on the number of retail organizations under the main code 47.11 OKVED 2 was analyzed using multiple regression analysis. To minimize statistical errors, environmental factors that influence the development of these organizations were identified and combined into a single indicator. The results of the analysis revealed that the competition between retail companies in Primorsky Krai differs from that in larger cities in Russia. This feature can be explained by the different target consumer groups of the two retail organizations and the range of products they sell, which is influenced by the level of e-commerce development in Primorsky Krai. Within the framework of this paper, a methodological framework for analysis will help us to understand the relationship between online and offline retail businesses in small and medium-sized cities in Russia and Primorsky Krai, in particular.