MANAGEMENT OF COST STRUCTURE IN RETAIL TRADE ENTERPRISES UNDER CONDITIONS OF DYNAMIC OPERATIONAL ACTIVITY AND DEMAND UNCERTAINTY

Abstract

The article is devoted to theoretical substantiation of the impact of cost structure on the profitability of retail trade enterprises under conditions of dynamic operational activity and demand uncertainty. The relevance is driven by growing demand volatility, inflationary pressures on energy, logistics and raw material costs, and the need for rapid operational restructuring in an unstable market environment. Traditional cost optimization methods, focused mainly on absolute reduction, prove ineffective amid sharp demand fluctuations, increasing operational risk and reducing financial stability. Cost structure is defined as the ratio of fixed and variable, direct and indirect costs, which directly determines operating leverage, financial sustainability and adaptability to sales volume changes. The author substantiates the need to shift from static reduction to flexible strategies enhancing cost elasticity and reducing profit sensitivity to demand declines. The classification of retail trade costs by main features is presented, emphasizing their influence on break-even points and operating leverage. CVP-analysis application in trade is considered, accounting for high share of cost of goods sold and operating expenses. Proposed strategies include transformation of fixed costs into variables, outsourcing of non-core functions, demand forecasting with modern tools, and integrated approach for synergistic effect. These replace rigid fixed costs with flexible, volume-proportional ones, automatically reducing expenses during downturns, accelerating profit growth during recovery, lowering break-even point and increasing marginality without drastic staff or assortment cuts. The generalization of cost management approaches, with timely monitoring of indicators, rapid cost item adjustment and consideration of external uncertainty factors, allowed the author to present an adaptive cost structure management mechanism that minimizes operational risk, preserves profitability and strengthens long-term competitiveness in turbulent conditions.