War in Ukraine and its Impact on the Dynamics of the Retail Market and Supply of Fast-Moving Consumer Goods

Abstract

The relevance of the survey issues lies in the changes that have occurred in Ukraine's retail market and FMCG suppliers due to the large-scale invasion. These sectors suffered devastating losses, the number of retailers and suppliers significantly decreased, and some are on the verge of closure. However, after being impacted, they continued to operate, quickly adapted to the new realities, and resumed their activities. In the future, this will affect the entire economy of the country, particularly retail trade and suppliers of finished goods. The purpose of this study is to analyze the future impact of the war in Ukraine on the retail market and suppliers of finished goods. The impact of the war on the further activities of retailers, pricing, scope of work, and conditions was analyzed. To achieve this goal, statistical data, public research, and surveys, analysis of scientific literature for 2022, and reports of international organizations were analyzed in stages.

Main results: Through empirical research and analysis of scientific literature and statistical data, the main factors that will affect the retail industry and suppliers of finished products in the future were identified: rising raw material prices, labor shortages, logistics problems, damage or destruction of premises, insufficient liquidity, reduced demand, and power outages. It was concluded that the stabilization measures taken by the state are effective and have impacted reducing inflation. Analyzing consumer prices, the influence of military actions on their growth by 20-30% in 2022 was revealed. The practical value of this study is that it can be used by retailers and suppliers of finished products to improve their activities and recover after military actions, as well as by national authorities for the development and preparation of regulatory acts and the implementation of measures to support businesses through scientists in future scientific efforts.