Current Retail Trends in UK and Analysis of Sainsbury's Business Model

This report discusses current retail trends in the UK, including the use of technology, personalized retail experiences, immediacy, and sustainability. It analyzes the business model of Sainsbury's and includes a SWOT analysis. Recommendations include using customer analytics tools, investing in research and technology, involving employees in decision-making, and focusing on customer support services.

FY028 Inquiry Based
Learning

Table of Contents
INTRODUCTION ..........................................................................................................................1
Current trends in the retail industry within UK .........................................................................1
Analysis of the organisation based on the business models .......................................................3
Recommendations.......................................................................................................................5
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................8

INTRODUCTION
Inquiry-based learning has been considered as a learning practices that help the students
in making the real world connection through exploration and high level questioning. It encourage
students to remain engaged in different practices such as experimental learning and problem
solving (Asare and et. al., 2022). This report is going to cover current retail trends within UK.
Apart form this, respective report will also analyse marketing performance of Sainsbury, that is a
retail company of UK and deal in general merchandise, groceries, fresh food and clothings. This
report will help in understanding what current retail trends within retail sector are. At last, this
report will also include an action plan for Sainsbury to meet the identified retail trends & attract
large number of the customers.
Current trends in the retail industry within UK
The retail trends analysis has ben defined as strategies that help the retailers in getting an
insight about right or effective move which need to be considered by the retail organisation in
order to generate high profitability (Beckers and et. al., 2022). Therefore, it has been identified
that investment is most significant trend that should be undertaken by the retailers when making
omni channel strategies. COVID 19 has influenced the retail organisation and leisure industries
as well. They are practising to cut down their cost in order to preserve the working capital and
also trying to strengthen company's balance sheet in most effective and strategic manner. At id of
2021, UK's economy has achieved an impressive recovery as guidelines and restrictions start to
lifted. The pandemic has also influence customer's buying behaviour (Mukthar and et. al., 2022).
Because of the unpredictable growth pattern and volatile market, year 2022 has been proved as a
turning point for the UK's retail industry due to a big shift of individuals towards the virtual
channels strategically. In UK's retail industry, retail trend can be seen as follows:
 Use of technology & multiple of choice- Omni channel retail strategies is most
significant retail trend within UK. It has been identified that individuals who uses the
digital devices normally connected with an average of 3.64 linked devices & before
buying any service or product individuals utilise such devices for the product
comparison, price comparison, rating comparison & time taken of product's delivery.
Customer can watch the product on their mobile before making any purchase & order that
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product form their device. It means that customer s have multiple of the choice for
looking product & they have various choice to buy the items. Online shopping trends
forced the UK's retail industry to think about the pricing strategies and marketing
strategies (Gali and et. al., 2022).
 Personalised retail experience- It is another thing which can be easily seen within retail
organisation. Personalised of the retail experience involve that retail firm like Sainsbury
care for the requirements, taste, needs, purchasing history and previous search of the
customers & then personalised the product or services as per the history. Online aid via
chat boar & customer scare facility for the customer help also a part for caring personal
needs & customer's taste (Heins, 2022).
 Growing culture of the immediacy- Rise of the latest technology make the buyers more
impatience. It has been analysed that customers want the immediate responses from the
company in retail sector & it has been identified that it become difficult for the customer
to wait for more than 10 minutes for communication response. Thus, retail companies
need to be aware regarding urgency of dealing buyers & provide them an immediate
support when they required. Culture of immediacy force the retail organisations to
facilitate an instant solution of customer's issue, otherwise, their customer will shift
towards other brands (Gavu, Owusu-Ansah and Anim-Odame,2022).
 Adoption of the sustainability paradigm- It has been identified that retail industry is a
major contributor in carbon emission. There are various retailers who has adopted the
sustainability practices in their work operation so that they can make a strong appeal to
the customers. Therefore, it has been considered as a powerful value proposition that can
stimulate the conscious buyers significantly. Along with this, it has been evaluated that
around 36% customer within UK are tend to select such brand that have a good
sustainability credentials strategically. Nowadays, customers prefer to purchase the
product and services form those organisation who has adopted sustainability work
practices such as compostable packaging, recycling and so on.
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Analysis of the organisation based on the business models
Sainsbury is a multi-channel retail organisation that offers general merchandise,
groceries, & clothing products. Respective fir operates the retail outlets of different formats,
such as convenience stores, & supermarket under Sainsbury’s, Habitat, & Argos banners. This
company also products via online channel. Sainsbury's stores provide fruits & vegetables, fish &
meat , dairy, juice, eggs,,pet food, baby & toddler products, spirits, beer and wine, & chilled &
frozen food, among others. Respective retail organisation also provides several financial
services, such as loans, travel money,credit cards, and insurance.
Sainsbury's has committed to investing around £1 billion over 15 years to become a Net Zero
business throughout its own trading operations by 2035, aligned to highest ambitions of the Paris
Climate Change Agreement.
Sainsbury's is implementing a programme of the change, paying more attention on reducing the
carbon emissions, plastic packaging, food waste, & water usage & increasing recycling,
biodiversity & sustainable & healthy eating.
Sainsbury's want to lowered the environmental effect of its business & work with growers,
farmers, and suppliers end-to-end its supply chain in order to help them reduce theirs.
Analysis of the primary data
The primary data to assess retail trend in context of Sainsbury's & how they are proving
seamless experience to customer is gathered through a questionnaire this questionnaire has been
prepared that is sent to 50 individuals who frequently shop form the Sainsbury's. Therefore,
through this questionnaire, it has been evaluated that in UK, individual has gained a positive
experience when shopping at Sainsbury's. According to them, respective company provide a
satisfactory services to its customer. Along with this, these individuals also like the
recommendations section and provide the personalised experience to them from Sainsbury's
manager strategically (Grant, Dabija and Tuomala, 2022).
Collection of the secondary data
In order to collect the secondary data, blogs, books, company's website and journals are
used to gain a better insights regarding performance of establishment in effective manner
(Satyam, Aithal and Pradhan, 2022).On the basis of this, SWOT analysis of Sainsbury's is
mentioned below:
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SWOT analysis of Sainsbury's
Strength Weakness
 Sainsbury’s has sponsored various
events related to Paralympics. Apart
form this, chain it has also hired several
celebrities and influencers like Ellie
Simmonds and David Beckham as
Sainsbury’s ambassador. Thus, these
influencer influence the customer to
make purchase form Sainsbury’s
 Sainsbury’s is a listed company under
constituents of London Stock Exchange
& FTSE 100 Index. Therefore, being a
listed firm means that public could
easily & freely trade the stock & shares
of the firm in stock exchange.
 Sainsbury’s offers wide range of the
products in several categories, & the
firm is facing few competitors in
various categories which are niche-
focused. These niche-focused rivals are
attracting major share of customer
market.
 Pandemic has caused a surroundings of
the economic uncertainty & shortage of
the supplies. It has increased the cost &
the Sainsbury’s had no option to
increase prices. Resultantly, sale of the
respective company's products dropped
to a great extent.
Opportunities Threats
 Sainsbury’s have an opportunity to
introduce self-checkouts latest
automated machine. This would enable
the respective firm to serve its
customers 24 hours a day & 7 days a
week. Most significantly, automated
technology would make the procedure
cost-effective & also increase
Technological advancement has made this
universe a global village. several businesses
organisations are expanding their operation &
have become the global multinational brands.
According to the law, different has different
law. Therefore, it facilitate a great opportunity
& big threat to Sainsbury’s in terms of legality
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company's overall sale.
 As Sainsbury’s has established a wide
network within United Kingdom.
Therefore, respective company have an
opportunity to expand its business
within African & other Asian countries.
and expansion.

Pandemic & global lockdown have shut
down several of business stores
throughout the United Kingdom. Due to
this, annual revenue & net income of
Sainsbury’s have dropped by around
3.2% & 7.8%. along with this,
pandemic has also decline the
customer's purchasing power.
Impact of the current retail trends on the organisational performance
It has been denitrified that Sainsbury’s performance has been increased continuously that
help the organisation in generating more profit margin effectively. In respective organisation,
manager has adopted the digitalised practices that enable the company in proving a personalised
experience to its customers (Gupta and et. al., 2022). Sainsbury’s is conducting its operational
activities with latest trend that are flourished within retail industry including execution of the e-
commerce activities, ethical & sustainable practices and so on. It sustainable practices help the
respective company increasing its customer base customer prefer to shop at environmental
friendly organisation. Along with this, it also enable the Sainsbury’s to increase its profitability.
Recommendations
From the above analysis, it is recommended to Sainsbury’s that it should use the
customer analytics tool as it will enable the respective company to measure is success in term of
the customers engagement. This practice will help the organisation to bring some improvisation
in its product and services. Along with this, it is suggested to Sainsbury’s that it should invest in
its research and technology department and adopt latest technology to perform more effectively.
Its managers should engage themselves in adopting of digital mobile wallet so that company can
provide a better customer experience. Sainsbury’s need to formulate strategies in order to
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provide a seamless experience to its consumers when they shop via online. Apart from this, its
manager should adopt such system in which a code or sensor can be inserted at its product as
when any customer will pick that product then it will directly added to their mobile application.
Customers can pay their bill by avoiding any big queues in supermarket or super stores of
Sainsbury’s.
It is suggested to Sainsbury’s to take use of the automated robotic machines for its
warehouses as it helps in reduce the manual jobs of employees. As situation of the market is
becoming very dynamic, therefore to cope up with these situations Sainsbury’s need to work
with the innovative and latest technology.
It is suggested to Sainsbury’s manager that it should involve its employees in decision
making where they can explore their ideas and help the organisation in taking most effective
decisions.
Sainsbury’s need to pay more attention on the emerging market for its product or
services. Along with this respective company should focus on its advertising challenges through
which company can target a specific growth of the customers & ask them to buy these product.
Sainsbury’s can target its customer by using the social media suites, television advertisement and
other sources.
At last, Sainsbury’s need to focus on customer support service after sale of product to the
customers, that is very crucial within retail sectors as it help the company to survive for long
duration within marketplace.
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CONCLUSION
From the above report, it has ben find out that through inquiry based learning, students
can enhance their skill or knowledge effectively. This report has discussed about current retail
trend that are using by the retail firms to stay within marketplace. Along with this, respective
project report has also analyse the SWOT analysis of the Sainsbury's in which it has been
analysed that respective company has various opportunities to grow its business. This analysis
also show that company is facing various problems. Therefore it is recommended to respective
company that it should adopt latest technology in order to move with the current trend so that it
become responsive to cater the customer demand more efficiently.
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References:
Books and Journals
Asare, E. and et. al., 2022. Thematic literature review of working capital management in the
construction industry: trends and research opportunities. Construction Innovation,
(ahead-of-print).
Beckers, J. and et. al., 2022. Incorporating E‐commerce into Retail Location Models.
Geographical Analysis, 54(2), pp.274-293.
Gali, K. and et. al., 2022. Trends and consumption patterns in the use of e-cigarettes among
adolescents and young adults in Germany (the DEBRA study). Addictive Behaviors,
p.107375.
Gavu, E.K., Owusu-Ansah, A. and Anim-Odame, W.K., 2022. The residential, office, retail and
industrial markets in West Africa. In Understanding African Real Estate Markets (pp.
37-47). Routledge.
Grant, D.B., Dabija, D.C. and Tuomala, V., 2022. Reshaping green retail supply chains in a new
world order. In Rethinking Leadership for a Green World (pp. 282-309). Routledge.
Gupta, R. and et. al., 2022. Waste management in fashion and textile industry: Recent advances
and trends, life-cycle assessment, and circular economy. Emerging Trends to
Approaching Zero Waste, pp.215-242.
Heins, C., 2022. The impact of COVID-19 on the grocery retail industry: innovative approaches
for contactless store concepts in Germany. foresight.
Mukthar, K.J. and et. al., 2022. Redesigning and Reinvention of Retail Industry Through
Artificial Intelligence (AI). Future of Organizations and Work After the 4th Industrial
Revolution: The Role of Artificial Intelligence, Big Data, Automation, and Robotics,
1037, p.41.
Satyam, S., Aithal, R.K. and Pradhan, D., 2022. Resilience of an evolved retail agglomeration:
case of rural periodic markets in emerging economies. International Journal of Retail &
Distribution Management, (ahead-of-print).
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