Ukrainian retail is going through one of the most difficult stages in recent decades. Competition is intensifying, some companies are closing down, others are changing work formats under the pressure of the war. Attacks on infrastructure, blackouts and staff shortages are already transforming the market. UTG company Director Evgenia Loktionova told Retailers how business adapts to the realities of the fourth year of a full-scale war.

How war affects retailers

The war today has the biggest impact on retail operations and forces businesses to increase costs, including running on generators, which increases the cost of goods.

The personnel situation is complicated by mobilization and migration. Companies face a shortage of personnel, especially drivers and qualified logisticians. Logistics constraints add to the pressure: limited port operations and delays due to inspections increase shipping costs and lengthen supply chains.

Economic risks and inflation

Financial factors have an equally significant impact on the market. The decline in purchasing power is changing the structure of demand: consumers are paying more attention to prices, choosing basic goods more often, and reducing spending on optional purchases.

Inflationary expectations increase the tension in pricing — retail prices are affected by devaluation and rising production costs. The shadowing of the economy remains an important problem: the increase in the volume of the “gray” sector, estimated at up to UAH 500 billion, creates unequal conditions of competition.

Changing legislation as a business risk

Legislative instability and unpredictable tax changes complicate strategic business planning and force companies to operate in short-term planning mode.

The situation may be complicated by external trade restrictions, in particular, a possible revision of the terms of free trade with the EU or the return of tariffs and quotas for Ukrainian goods.

Roadmap for retailers in 2026

Despite the difficult conditions, retail is gradually building systemic adaptation mechanisms. One of the main directions is the diversification of sales channels. The development of e-commerce and multi-channel strategies allows working with different audience segments and reduces dependence on individual formats.

The role of automation is growing. Companies are implementing AI agents (super agents) to automate warehouse processes and personalized marketing.

The business is also reviewing its assortment policy, focusing on consumer goods, refurbished electronics, home goods and the Pharma/Healthcare segment. There is also growing demand for private labels, which enables customers to offer more value at a lower price. In marketing, this approach is known as Value for Money or Frugal Innovation — creating the most useful product at an affordable cost.

Another important direction is energy independence. Investments in own generation and backup logistics routes become an element of operational security.

Labor market: “perfect storm” for employers

One of the most difficult problems remains the personnel shortage. Increased mobilization, migration and internal displacement have created a situation that business describes as almost a “perfect storm”.

In response, companies are trying to retain staff. Flexible schedules, such as short shifts or customized work formats, often prove more effective than salary increases.

Safety also plays a big role: shelters, clear emergency protocols, health insurance, and mental health support programs help reduce burnout and increase employee loyalty.

Companies are also expanding the range of candidates, more actively attracting older people, women to traditionally “male” positions and implementing fast training programs. Basic merchandising or logistics skills can be mastered in a few weeks.

Transparency and staff reservation

For retail and distribution, the status of the enterprise, which allows booking key employees — drivers, logisticians, and IT specialists — remains critically important. And transparent work and interaction with industry associations help businesses to respond more quickly to changes in legislation and adapt to new requirements. It is no less important to work with the employer’s brand, because people choose companies where they feel stable.

Technologies as an answer to the shortage of personnel

When human resources are in short supply, they can be replaced by technology. In retail, these are self-service checkouts, electronic price tags and self-scanning mobile applications. In distribution, there are WMS-systems and voice picking of goods (Voice Picking), which speeds up work almost twice and reduces the need for personnel.

Conclusion

So, the crisis became an opportunity for development for Ukrainian retail. In the coming years, the competitive advantage will not be the scale, but the speed of adaptation. Those companies that today rebuild operational processes, invest in technology and build consumer trust will become leaders in the market.

Source: https://retailers.ua/news/mneniya/riteyl-i-distributsiya–osnova-prodovolchoyi-bezpeki-krayini