THE ROLE OF INNOVATION AND DIGITIZATION IN STRENGTHENING THE COMPETITIVE POSITIONS OF UKRAINIAN TRADE ENTERPRISES

Abstract

The article comprehensively examines the role of innovation and digitalization in strengthening the competitive positions of Ukrainian trading enterprises in the face of military challenges, global competition and economic instability. It is substantiated that innovation acts not only as a tool for modernizing business processes, but also as a strategic resource that determines the stability and long-term competitiveness of trading companies.Digitalization is considered a key factor in the transformation of business models, which opens up new opportunities for the development of e-commerce, omnichannel trading formats and data analytics, as well as for the integration of Ukrainian enterprises into global supply chains. The paper analyzes the current state of functioning of trading enterprises based on key macroeconomic indicators (GDP dynamics, inflation rate, trends in the development of retail and wholesale trade, the state of logistics infrastructure). The main problems and barriers to innovative development are identified, including financial constraints and high risk premiums for investors, logistical difficulties caused by military operations, a shortage of qualified personnel due to migration and mobilization processes, as well as a digital divide between large network operators and small companies. It is shown that in these conditions, innovative leaders accelerate warehouse automation, the implementation of CRM and ERP systems, the development of e-commerce and the integration of omnichannel platforms, while less powerful players lag behind in digital transformation. The scientific novelty of the study lies in determining the relationship between innovative practices, digital technologies and competitive advantages of retail enterprises in the face of existential challenges. The practical significance lies in the possibility of using the results of the study to develop strategies for the development of retail enterprises, as well as in the formulation of recommendations for state policy to support digitalization, strengthen logistics infrastructure and stimulate innovative investments. Thus, innovation and digitalization are considered as key areas for increasing the efficiency, adaptability and competitiveness of Ukrainian retail enterprises, which will determine their ability not only to recover from the crisis, but also to integrate into the modern global economy.