Current Trends in Supermarket Sector and Tesco Performance

CLASS GROUP
PRESENTATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Current trends in supermarket sector..........................................................................................3
Tesco performance since October 2015......................................................................................3
Aldi and Lidl financial performance...........................................................................................4
SWOT analysis of Tesco.............................................................................................................4
Recommendation for improvement to Tesco..............................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business is referred to as the entity which deals in buying and selling of the goods and
services to the consumer against some consideration. For the success of the business, analysis of
external environment is very essential as it provides details of the changes taking place in
external environment. The present study is based on Tesco which is the largest supermarket
chain in UK and was founded in 1919 by Jack Cohen. The current report will outline the current
trends within the supermarket along with performance of company since 2015. Further it will
analyse the financial performance of Aldi and Lidl who are competitors of Tesco. In the end
SWOT analysis will be conducted and some recommendation on improving financial
performance and market share will be provided.
MAIN BODY
Current trends in supermarket sector
The business environment is changing to a great extent and because of this there are
many different changes taking place in trends among consumer. Latest trend in supermarket
sector within UK are as follows-
 Currently, the consumers are becoming more conscious relating to their health and
consumption of healthy and organic food. This is the most common change among the
consumer as their focus has increased much on wellness and health (Retail trends 2021,
2021).
 In addition to this, another trend in supermarket chains in UK is the use of technology in
producing and delivering the products to the consumers. For example, use of AI, robotics,
interactive fitting rooms, scan pay go technology and many others.
Tesco performance since October 2015
The performance of Tesco since October 2015 is continuously increasing and this
resulted in increase in profit. With help of the comparative overview of the company financial
performance it was analysed that the sales of company are increasing since 2015. In addition to
this, with view of sales by region as well the revenue of company is eventually increasing (Five-
year record, 2021). Hence, this resulted in the overall increase in the sales of the company.
Further when it comes to profitability of the company, the operating profit of the company is also