Abstract

General Background: Retail trade plays a critical role in Uzbekistan’s economy, contributing significantly to growth, employment, and consumer satisfaction. Specific Background: While the sector has experienced rapid revenue expansion over the past decade, digital transformation remains unevenly distributed, especially between large enterprises and small businesses. Knowledge Gap: Despite notable progress, small and medium-sized retailers struggle to implement advanced analytics and management reporting due to resource constraints, lack of expertise, and infrastructure limitations. Aims: This study aims to evaluate the current state, challenges, and prospects of analytics and management reporting tools within Uzbekistan’s retail sector amid ongoing digital transformation. Results: Findings reveal exponential growth in retail revenue and partial digital adoption, particularly among large chains deploying BI, CRM, and AI tools. However, smaller businesses remain digitally underserved. Novelty: The research presents a systemic framework integrating state support, education, and cloud-based technology adoption to bridge the digital divide and enhance analytical capacity. Implications: The study underscores the need for government-subsidized digital tools, targeted workforce development, and infrastructure investment to ensure inclusive digital progress and sustained efficiency in retail trade across Uzbekistan.

Highlight :

• Retail trade in Uzbekistan is growing steadily but small businesses lag in adopting digital tools.

• BI, CRM, and AI systems are transforming large retailers, enhancing decision-making and efficiency.

• Key barriers include specialist shortages, infrastructure gaps, and limited digital access for SMEs.

Keyword : Retail Trade, Business Intelligence, Digital Transformation, CRM Systems, Uzbekistan

Introduction

Retail trade is one of the main sectors of the economy of Uzbekistan, playing a significant role in ensuring economic growth, employment, and satisfying demand. Over the past ten years, it has demonstrated steady development, as evidenced by an increase in both the total revenue of enterprises and the revenue of retail trade enterprises. In today’s competitive market, effective management of retail business is impossible without quality analytical information and management reporting. The development of information technology and the digitalization of the economy imply the use of new opportunities for the collection, analysis, and forecasting of data for management decision-making in retail[1]. Current trends in the development of retail trade in Uzbekistan include an increase in the share of modern trade formats, the development of omnichanneling, and the introduction of digital technologies in management and customer interaction processes. According to an INFOLine study, total retail turnover in Uzbekistan increased by 9.9% in 2024 compared to the previous year, which exceeds similar indicators in neighboring countries such as Kazakhstan, Belarus, and Russia .

Despite the positive dynamics, the share of modern retail in Uzbekistan remains below 20%, which indicates significant growth potential and the need to improve analytical tools and management reporting to improve business efficiency .

The purpose of this study is to analyze the current state and prospects for the development of analytical tools and management reporting systems in the retail trade of Uzbekistan in the context of the digital transformation of the industry[2].

Methodology

1. Data Collection

As part of the study, a comprehensive approach to data collection and analysis was used, including:

1. Analysis of Statistical Data - Official statistical data on retail trade in Uzbekistan for the period 2014-2023 were used, reflecting the dynamics of aggregate revenue of enterprises and revenue of retail trade enterprises.
2. Literature Review - An analysis was conducted of scientific publications, industry reports, and analytical materials devoted to the development of retail trade and the introduction of digital technologies in Uzbekistan[3].
3. Analysis of Industry Rankings - Data from the ranking of the largest retail chains in Uzbekistan — Retail Uzbekistan TOP, reflecting key market trends, were used 1.
4. Comparative Analysis - A comparison was made of the development indicators of retail trade in Uzbekistan with similar indicators in other countries of the region.

2. Methods of Data Analysis

The following methods were used to analyze the collected data:

1. Statistical Analysis - Calculation of growth rates and other statistical indicators to assess the dynamics of retail trade development.
2. Graphical Analysis - Visualization of data for a clear presentation of the dynamics and structure of retail trade.
3. Content Analysis - Studying the content of publications and reports to identify key trends and problems in the field of analytics and management reporting.

Results

1. Dynamics of Retail Trade Development in Uzbekistan

The analysis of statistical data (Figure 1) shows a steady growth of retail trade indicators in Uzbekistan in the period from 2014 to 2023. As can be seen from Figure 1, the aggregate revenue of enterprises in Uzbekistan increased from 56,508.5 million soums in 2014 to 1,533,599.1 million soums in 2023, which represents a growth of more than 27 times over the specified period. The revenue of retail trade enterprises for the same period increased from 24,275.5 million soums to 474,990.6 million soums, which represents a growth of almost 20 times[4].

Figure 1.Dynamics of Enterprise Revenue in Uzbekistan (2014-2023)

It is interesting to note that the share of revenue of retail trade enterprises in the total revenue of enterprises has been declining over time (Figure 2). If in 2014 this share was 42.96%, then by 2023 it had decreased to 30.97%. This indicates that other sectors of the economy of Uzbekistan have developed at a higher rate than retail trade.

Figure 2. presents a vertical bar chart illustrating the proportion of retail trade revenue relative to the total enterprise revenue in Uzbekistan over the period 2014 to 2023. In 2014, retail accounted for the highest share at 43.0%, followed by a significant decline to 25.7% in 2015 and continued to drop to 23.4% by 2018[5]. From 2019 onward, the trend shows a gradual recovery, with the share increasing from 25.0% to 31.0% by 2023. Despite this rise, the overall pattern highlights a decline in the relative share of retail revenue, reflecting structural diversification of the economy—indicating that while retail continues to grow in absolute terms, other sectors are expanding at a faster pace. This shift suggests that Uzbekistan’s economy is becoming more balanced and resilient, without diminishing the importance of retail in meeting final consumer demand.

Figure 2.Share of Retail Revenue in Total Enterprise Revenue (2014 – 2023)

This does not necessarily indicate stagnation within the sector. On the contrary, such a decrease typically reflects structural changes in the country’s economy. The decline in the relative share of retail trade should not be viewed as a sign of recession, but as a natural consequence of economic diversification, whereby the economy becomes more balanced and resilient to external shocks[6]. Simultaneously, retail itself continues to grow in absolute terms and retains its crucial function of meeting final consumer demand.

2. Current State of Analytics and Management Reporting

Research has shown that Uzbekistan’s retail trade is experiencing a gradual transition from traditional methods of analysis and reporting to modern digital solutions[7]. Currently, the following analytical tools and management reporting systems are utilized within the industry:

Table 1 outlines the fundamental components of a Business Intelligence (BI) system, which collectively support data-driven decision-making in retail management. The ETL (Extract–Transform–Load) process enables the integration of data from various sources into a structured format[8]. The Data Warehouse (DWH) serves as the central repository for storing and organizing this data for analytical use. OLAP Cubes facilitate multidimensional analysis, allowing users to examine data across various dimensions such as time, product, or location. The Visualization (Dashboard) component presents key metrics through interactive charts and graphs, enabling swift managerial insights. Finally, Analytics and Forecasting tools apply statistical and predictive models to identify trends, detect anomalies, and support strategic planning[9]. Together, these elements provide a comprehensive infrastructure for enhancing operational efficiency, enabling real-time insights, and fostering evidence-based decision-making within the context of Uzbekistan’s digitally transforming retail sector.

1. CRM Systems: The market for Customer Relationship Management systems in Uzbekistan continues to grow. In 2025, its volume is estimated at US$83.63 million 3. CRM systems allow retail companies to collect and analyze data about customers, their preferences, and behavior.
2. Retail Management Systems (RMS): A range of solutions for automating retail store management are available in Uzbekistan, including features for inventory accounting, inventory management, sales analysis, and report generation.
3. AI Systems for Retail Analytics: Innovative solutions using artificial intelligence to analyze customer behavior in offline stores are emerging in the country. For example, TASS Vision offers analytical tools for offline retailers, interacting with more than a thousand points of sale 4.

A good example of the successful implementation of modern analytical tools is the pharmaceutical market of Uzbekistan. For instance, Proxima Research introduced the Sell Out product, becoming the first in the market to provide analytics based on real sales data in pharmacies 5. This enabled market participants to obtain not just estimates, but an actual picture of consumer demand. In addition, the company updated reports in Power BI, making them interactive and visually appealing – now users can easily analyze retail sales, compare data across regions, and make more accurate management decisions[10].

3. Digital Transformation of Retail

Digital transformation in Uzbekistan began to take shape about ten years ago, when the Comprehensive Development Program was approved in 2012 6. Since then, the country has been taking confident steps toward a digital economy, actively introducing modern technologies and creating favorable conditions for their dissemination[11].

In retail, this is particularly noticeable in several areas:

1. Development of E-commerce. According to the U.S. Department of Commerce, in 2021, online sales in Uzbekistan reached $1.39 billion, accounting for more than 90% of all digital revenue in the country 7. This indicates a high level of consumer interest in online platforms.
2. Growth of Omnichannel. More and more retailers are launching online stores and express delivery services, striving to provide convenient shopping experiences across different interaction channels 1.
3. Digitalization of Payments. The transition to cashless and electronic forms of payment not only makes purchases faster but also allows retailers to obtain more data for subsequent analysis 8.
4. Service Automation. Solutions such as QueueBee are being implemented in retail stores to optimize queue management processes and improve the quality of the customer experience.

However, despite significant progress, the digital transformation of retail in Uzbekistan faces several serious challenges:

1. Small Businesses Lag Behind. Many small retail enterprises still do not have access to modern BI tools and reporting systems, which hinders their development 1.
2. Shortage of Specialists. Demand for professionals in the field of digital technologies, analytics, and data management significantly exceeds supply, especially in the regions 8.
3. Infrastructure Limitations. A lack of warehouse space and weak logistics impede the implementation of automated inventory management and supply chain analysis systems 1.
4. Therefore, Uzbekistan is already demonstrating steady success in the digitalization of trade, but for a full transformation, a systemic solution to current limitations is needed - both at the business level and at the level of state support[12].

Discussion

The results of the conducted research confirm that retail trade in Uzbekistan continues to demonstrate steady growth. However, despite the positive dynamics, the level of implementation of modern analytical tools and management reporting systems remains relatively low - especially for small businesses[13].

The trend towards a gradual transition from traditional methods of analysis to digital solutions is most clearly seen. Large retail chains are already actively using comprehensive BI systems that allow them to track sales in real-time, manage assortment, analyze customer activity, and control inventory. At the same time, small businesses often continue to rely on outdated approaches - manual accounting, fragmented reporting, minimal analytics, which reduces their competitiveness compared to more agile market players.

A significant obstacle to the wider use of analytics remains the shortage of qualified specialists. That is why the issue of training personnel in the field of business analytics, digital technologies, and data handling comes to the fore. Without systematic investment in education and professional training, it will be difficult to fill this deficit 8[14].

An interesting fact: Although the revenue of retail enterprises continues to grow in absolute terms, their share of total business revenue is gradually decreasing. This may indicate that the country’s economy is becoming more diversified: industry, services, and the IT sector are actively developing. However, this does not diminish the role of retail, which remains the most important channel of interaction between production and the end consumer.

A comparison with neighboring countries also shows that Uzbekistan has great potential for the development of modern retail trade. According to INFOLine, in 2024, the growth of retail turnover was 9.9%, which is higher than in Kazakhstan, Belarus, and Russia 1. Nevertheless, in terms of the density of retail outlets, especially in cities like Tashkent, Uzbekistan is still lagging behind. For example, the capital has about 17,000 stores, but in terms of the number per capita, this figure is lower than in the megacities of neighboring Kazakhstan 1.

To accelerate development and increase the effectiveness of analytics in retail trade, it is advisable to take the following measures:

1. Develop and implement state programs to support the digitalization of small and medium-sized businesses, including compensation for the costs of purchasing analytical platforms and management accounting software.
2. Actively develop educational initiatives in the field of BI, data management, and digital solutions to create in-demand personnel 8.
3. Encourage the use of cloud solutions - accessible, flexible, and scalable, especially for small businesses.
4. Work to eliminate infrastructure barriers, first of all - increase warehouse and logistics capacity, to ensure a full digital transformation of accounting and analysis processes [15].

Conclusion

The conducted research confirms that retail trade in Uzbekistan is in a phase of steady growth and active digital transformation. Over the past decade, revenue volumes in this sector have increased many times over, which indicates the high potential and strategic importance of the industry for the country’s economy.

The study shows that large retail chains are already implementing modern analytical tools - BI, CRM, AI solutions - and using them to improve the transparency and efficiency of management decisions. At the same time, small and medium-sized businesses are not yet fully involved in these processes, which creates a digital divide and limits the overall effect of the transformation.

The key barriers remain a shortage of specialists, a weak technological base for small businesses, and insufficient logistics infrastructure. Overcoming them requires coordinated action: state support (for example, subsidizing software and cloud solutions), the development of educational programs in business analytics, and investments in logistics and digital platforms.

Thus, the future of management accounting in retail trade in Uzbekistan directly depends on the ability to combine the efforts of the state, business, and educational institutions. At the same time, digitalization is not just a trend, but a real tool to improve the efficiency, transparency, and sustainability of retail in the long term.

References

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