Green transformation of retail business as a strategic resource for sustainable growth

Abstract

The purpose of the study is to substantiate the conceptual foundations of environmentally-oriented transformation in trade and to determine how integrating sustainable development principles into the operational and strategic activities of trade enterprises can strengthen their long-term competitiveness, economic stability, and social responsibility. Analytical and structural methods were used to identify key factors influencing the implementation of environmentally oriented practices in the activities of trade enterprises, and elements of strategic analysis were used to substantiate mechanisms for integrating sustainable development principles into companies' business models. Results. The results of the study indicate that the green transformation of trade enterprises is characterized by the systematic integration of environmental principles into the business model, including the development of sustainable supply chains, resource-efficient operations, an environmentally responsible product policy, and the use of digital tools for environmental monitoring and performance assessment. The main drivers of this transformation are increasing regulatory requirements, growing demand for sustainable consumption, expansion of ESG-oriented investment practices and the internal need to improve operational efficiency, corporate reputation and long-term competitiveness. At the same time, its implementation is constrained by high initial investment costs, organizational inertia, insufficient management competencies, limited access to reliable environmental data, and the complexity of coordinating sustainable development initiatives across supply chains in conditions of market uncertainty. Strategic directions and management mechanisms aimed at integrating sustainable development principles into the business models of trading companies are substantiated, in particular through increased resource efficiency, the development of sustainable supply chains, and the implementation of environmental management systems and stakeholder-based governance. Conclusions. It is established that the green transformation of trading enterprises should be considered a strategic resource for ensuring sustainable growth, rather than a peripheral environmental initiative. Systematic integration of sustainable development principles into corporate strategies and operational processes will improve enterprises' environmental performance, strengthen organizational resilience, and enhance long-term competitiveness amid global economic and environmental transformations.