ECONOMIC MECHANISM OF COST MANAGEMENT OPTIMIZATION IN RETAIL TRADE: THEORETICAL AND METHODOLOGICAL PRINCIPLES

Abstract

The article investigates the economic mechanism for optimizing cost management in retail enterprises, identifies its theoretical and methodological foundations, and outlines practical directions for its implementation to enhance the efficiency, competitiveness, and sustainability of retail operations. The study provides a comprehensive synthesis of contemporary scientific approaches to the essence, structure, and functioning of the economic mechanism, allowing it to be conceptualized as a complex multifunctional system that integrates managerial processes, economic instruments, methodological tools, and organizational conditions to achieve an optimal balance between costs and business outcomes. It is established that modern retail is characterized by high cost intensity due to the complexity of logistics and supply chain processes, rising energy and utility costs, increasing personnel expenses, and the need for digitalization and automation of business processes. While digital transformation creates new opportunities for cost optimization, it simultaneously demands significant financial, technical, and organizational resources.

The article substantiates key principles of cost management, including comprehensiveness, purposefulness, economic feasibility, and flexibility, alongside modern methodological approaches such as budgeting, cost calculation, sensitivity analysis, economic forecasting, scenario planning, and integration of digital and analytical technologies. Practical directions for applying the economic mechanism are proposed, including the improvement of cost accounting and control systems, optimization of logistics and inventory management processes, enhancement of labor resource efficiency, implementation of automated and analytical tools for real-time cost monitoring, and adaptive managerial decision-making responsive to market fluctuations. The study demonstrates that the implementation of an integrated economic mechanism for cost optimization enables retail enterprises to reduce unproductive expenses, enhance operational efficiency, strengthen competitive positions, and ensure long-term strategic stability. These measures create a foundation for sustainable development and resilience in a dynamic economic environment, providing both theoretical insights and practical guidance for managers, policymakers, and researchers engaged in the field of retail management and financial optimization.