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Abstract
<jats:p>The article examines the theoretical foundations and applied aspects of forming innovative mechanisms for ensuring the competitiveness of trade enterprises in the context of digital economic transformation. The essence and structure of digital transformation as a systemic phenomenon that causes fundamental changes in the competitive environment of trade are determined. The key components of the innovative mechanism of competitiveness of trade enterprises are studied: e-commerce and omnichannel strategies, artificial intelligence technologies, business process automation, data management and customer experience. An analysis of current trends in the development of retail trade in Ukraine and the world is conducted. Key barriers to digitalization of trade enterprises are identified and a practical algorithm for implementing innovative mechanisms is proposed.</jats:p>