Current Trends in the Supermarket Sector

This presentation discusses the current trends in the supermarket sector, focusing on the performance of TESCO since October 2015. It also highlights the financial performance of ALDI and LIDL. The report explores the challenges and opportunities in the industry and provides recommendations for TESCO to improve market share and profit performance.

CHALLENGE BASED ON
TESCO

Table of Content
Introduction
Key strategic theories
Current trends in the supermarket sector
TESCO Performance since the October 2015
Current financial performance of ALDI and LIDL
CONCLUSION
References

Introduction
The term retail sector is defined as a sector of business that
sale goods and products from their store for satisfying
different needs of consumer such as grocery, clothings at one
place. Retail seller purchase their products from wholesaler,
stock of products and than sell them to individual consumer
within small quantities. This report is written from
perspective of TESCO which is a British multinational
grocery and general merchandise retail organisation with it's
headquarter in Welwyn Garden city, Hertfordshire.
Moreover, this presentation highlights on current trends in
supermarket sector and the performance of TESCO since
October, 2015. Current financial performance of ALDI and
LIDI will also highlight in this report.

Current trends in the supermarket sector
Supermarket are generating new experience with colour
coding, special area and exciting display which are
combine together for completing work according to
existing trend. Example- Promoting healthy food
products that boost immune system of individuals and
help them to ensure their health. Some current trend of
supermarket are mention as follow:
Analytics for personalised customer experience- The
existing retail organisation are coping with digital
companies to perform work with advanced analytics
and information. Example- loyalty programmes are the
system that is used to retain customers for longer
period. It generate a few challenge for TESCO such as
to engage technology reduce profit for business.

TESCO Performance since the
October 2015
TESCO is performing their work from the last century and it is known
as a well-known retail organisation among global level. According to
present market conditions TESCO expand their business within different
countries by increasing their number of operations and customer base. It
result goodwill and brand value of respective organisation is increased
by performing business among different geographical areas. But the year
2015, create different challenges for the organisation as it is complex for
business to earn profits on earlier basis. One of the biggest challenges
which is suffered by TESCO is high loss, UK retailer define annual tax-
profit that is one of largest sum of money within country's corporate
history.

– Current financial performance of
ALDI and LIDL
ALDI and LIDL financial performance perform work with
a collective form and it generate worth near about £344
million and it is more from the last year of performance.
The current market share figure define two perspective and
it make a market share that make the worth more valuable
for the existing year and period. On the other side, ALDI
compare number of stores from previous year which state
that there are additional 630,000 shop are opened at LIDL.
Similarly, market share for the ALDI is stand with 8
percent and from the previous year there is a constant
increase with 7.3%.

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LIDL number of operations generate a better turnover
that is related with 46.1 billion Euros and it constitutes
growth with 11% stronger from the previous year. This
also points better than expected from the previous year
earnings.

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Source(https://www.statista.com/statistics/618263/edible-grocery-sales-forecast-for-aldi-united-kingdom-uk/

Internal and external factors
Political factor
Economic factor
Social factor
Technological factor
Environmental factor
Legal factor

SWOT Analysis
Swot analysis is an technique that provides a assessment tool to
identify company's strengths, weaknesses, opportunities,
threats. Strength and weakness are internal part of a company
things that have control and can change according to the
company.
STRENGTH WEAKNESSES
High brand value- its provides
value to the customer as well as
loyalty which makes its brand
value high
leading market share- among the
four supermarkets, tesco
dominates grocery retail market
of great britain with 27% of
market share
Poor advertising compare to its
compititors-ASDA, sainsbury's
has more effective advertisment
then tesco
failed operation in US and japan-
because of the failed export
operation it close its store from
japan after 9 years and from US
after 5 years low cost strategy.

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THREATS OPPORTUNITIES
TESCO can face threats from
other competitors like ALDI,
ASDA and more, as they are
offering same or simlar form of
products and services in
marketplace.
Pandemic situation of COVID-19
can hamper growth and
profitability of company.
Company can gain opportunities
while making business
promotions via online channels
likhe social media, digital media
and more.
TESCO can conduct their
business operations while
making partnership with small
start-ups in order to gain more
market share holding.

Recommendation for TESCO to gain market
share and improve profit performance
Due to globalisation, high competition exits within retail industry so it is
important for management for complete work in an organised manner.
In context of TESCO, management face challenge to complete task
according to decided strategy. Market penetration and cost leadership
are two techniques that is used for managing work according to
decided growth strategies. Along with this strategy refer to attract and
involve more number of stakeholders that leads to increase in sales of
products. So it is recommend to organisation to TESCO that increase
in market share depend on customer base and share as per market
share.

 CONCLUSION
With the analyse of all above report it is concluded that
market trends plays an important role for an industry and
organisation. By analyse of different trends performance
of TESCO is improved through providing products
according to customer requirements. In the last, some
recommendation are also given to TESCO for improving
market share and profit performance.

REFERENCES
Tidy, M., Wang, X. and Hall, M., 2016. The role of Supplier Relationship
Management in reducing Greenhouse Gas emissions from food
supply chains: supplier engagement in the UK supermarket sector.
Journal of Cleaner Production, 112, pp.3294-3305.
Alexander, A., 2015. Decision-making authority in British supermarket
chains. Business History, 57(4), pp.614-637.
O'Connell, N and et. al., 2014, October. Regulating power from
supermarket refrigeration. In IEEE PES Innovative Smart Grid
Technologies, Europe (pp. 1-6). IEEE.
Clark, H and et. al., 2020. Healthy families: the present and future role
of the supermarket. Royal Public Affairs.