THE EFFECT OF DISCOUNT POLICY, DELIVERY SERVICE, AND COMPETITION DENSITY ON THE FINANCIAL PERFORMANCE OF A RAPIDLY EXPANDING RETAIL CHAIN

Abstract

This thesis examines the effects of discount policy, delivery service, and dynamic competition density on the revenue and profitability of a rapidly expanding retail chain. Using a panel dataset of 158,715 store-day observations from 140 outlets of a confectionery-café chain operating in Uzbekistan between January 2022 and June 2026, fixed- and random-effects panel regressions were estimated for both outcomes. The results show that discounting and delivery activity raise revenue but materially dilute gross margin. A dynamic, haversine-distance-based measure of competition density reveals that close competitors do not depress revenue and may instead raise it through agglomeration, while simultaneously compressing margin. The findings offer retail managers evidence-based guidance for discount policy design and new-branch siting decisions.