Inquiry Project: Retail Trends and Analysis of Tesco

This report explores the retail trends in the UK and provides an analysis of Tesco, a multinational retailer. It also offers recommendations for the company's growth and sustainability.

CW1: Inquiry Project

Table of Contents
Introduction...............................................................................................................................................3
Retail Trends...........................................................................................................................................3
Analysis of Tesco....................................................................................................................................5
Recommendations...................................................................................................................................8
Conclusion..................................................................................................................................................9
References................................................................................................................................................10
Appendix..................................................................................................................................................12

Introduction
The approach for learning which comprises of asking queries, acknowledging problems
and other aspects is referred to as inquiry based learning. It is liable for promoting in-depth
understanding of peculiar concept through which overall skills of individuals can be amplified
(AKTAMIŞ, HİĞDE and ÖZDEN, 2016). To understand the concept of inquiry based learning,
Tesco is taken into consideration which deals within retailing industry and was founded in 1919
by Jack Cohen. They are British multinational general merchandise retailers who furnish their
services in around 11 countries. This report comprises of trends which prevails in retail sector
along with analysis of the organization. At last recommendations will be given with respect to
firm for ensuring that they attain constant support.
Retail Trends
As per Retail Economics (2020), retail industry of United Kingdom comprises of around
£394 Billion total value in terms of retail sales in 2019. In addition to this, employees working
within United Kingdom’s retail industry are near about 2.9 million. Along with this, proportion
of customers who spend their money within this sector is 1/3 which denotes that it creates a
strong impact on growing economy of United Kingdom. In addition to this, online proportion of
retail sales that is being carried out by this sector is near about 19% in 2019 (UK RETAIL
STATS & FACTS, 2020). Furthermore, percentage of growth within retail sales of distinct
services and products which are accessible to unlike business firms as well as performed around
3.4% in terms of their growth rate. The total numbers of VAT registered vendors in United
Kingdom in UK are near about 208,760 in the year 2019. On the other hand, if retail outlets and
other supermarkets are taken into consideration then there are approximately 3, 06,655 stores
across the country. Total GDP is 5% and average annual growth in 2019 via online retail stores is
near about 10%. Lastly, an online sale has been increased in last ten years approximately by
324%. This implies that retail sector has a crucial role within economy of country but with the
enhancement in technology in terms of online sales there has been relevant improvement.
On the other hand, if challenges within retail industry are taken into account, then trends
which prevail within the market are altering continuously (Buchanan and et. al., 2016). As per
the patterns, in the market firm also needs to alter ways in which they deliver their services. The

primitive trends which came in front of this sector is shift within mindset of customer from
offline to online shopping where people also altered the ways in which they are spending as well
as, it will also trigger economic uncertainties with related with business environment. Apart from
this, the major confront which is being faced by retail sector was Brexit in which United
Kingdom has faced twice the outlook of a no-deal Brexit. It has laid influence on distinct
services as well as products in end of 2019 i.e. a festive period. Thus, this peculiar condition has
to be taken into account as it illustrates political instability (UK retail industry suffered worst
year on record in 2019, 2020). In addition to this, it was identified that 2019 was one of the most
horrible year for British retail industry as sales have been fallen down for first year on higher
streets down this industry. Apart from this, when market trends are taken into account that takes
place in international market then sum of these is illustrated beneath:
 Prioritize experiences over shelf space: Business firms emphasize on making use of
artificial intelligence as well as other updated technology for grabbing attention of their
probable customers who are tech savvy. The one who have internet connections as and
keeps on updating their product list for making people aware about services that are being
delivered by them as well as make their lives smooth.
 Customization of Products: Furnishing customized or personal touch to services and
products as per choice of customers is referred to as customization. This assists
consumers to correlate with brands closely (Chu and et. al., 2017). Customization can be
delivered by firm in terms of color, size, shape and various other aspects related with
products. Personalized products within retail trends which are anticipated to grow within
upcoming years. This will enable customers to order products as per their needs. In
addition to this, some brands also offer facilities to customer to design products according
to preferences. This will aid them to formulate long-term relationship and acquire loyalty
of customers. It leads them to have competitive edge in the marketplace. Omni-channel Retailing: It is current trend within retail industries which are being
adopted by companies. This implies model in which existent channels of firm are merged
with each other so that customers can be provided impelling experience. This trend is
crucial as customers can interact with retail outlets in an affirmative manner and can have
relevant information (Dobber and et. al., 2017).

Analysis of Tesco
Background of the company
Tesco Plc is renowned largest British multinational firm who provides their customers
with higher quality of services and products at reasonable prices. It is headquartered in
Hertfordshire, England, UK. It is the third largest retailer across the world in terms of gross
revenue. In addition to this, if this is being measured in context of revenue then firm is on ninth
position in retailers list around the globe (Galan and et. al., 2017). They are listed on London
Stock Exchange as well as are constituent of FTSE 100 index. There products comprises of
supermarket, convenience shop, superstore and hypermarket.
Primary investigation:
Depending on the primary data which has been gathered from stakeholders of Tesco in
which respondents were 40. It is understood that firm do not need to make various modifications
within their operations but they have to collect information with respect ways in which they can
modify as well as formulate strategies for enhancement of organization as well as their
stakeholders.
SWOT Analysis
Strengths Weaknesses
 Highly trained as well as skilled
employees through effectual learning
programs. Tesco has made enormous
assets within preparation as well as
enhancements of their representatives
for bringing in employees who look
forward for accomplishing more
(Marian and Jackson, 2017).
 Flourishing reputation of growing items
or one in development.
 Higher levels of loyalty from
customers, the firm is devoted to
 Few subsidiaries of Tesco are not
operating as per desired standards as
they are prone to external factors. For
an instance, Tesco Finance profit levels
were influenced due to credit crisis.
 In 2017, Tesco was found guilty as they
have shown less profit within their
accounting ledgers for preventing taxes.
This hampered reputation of Tesco.
 There is a gap in between products
which are sold by organisation. This
lack gives their competitors to have

relationship with clients. This leads
them to have enhanced brand value
within the market.
 Tesco have efficient as well as effective
range of suppliers which allows them to
deliver on time services within the
market.
foothold within the market.
 Days stock is high with respect to their
contenders which leads to rise within
cash-flow (Ramnarain and Hlatswayo,
2018).
 The net contribution as well as
productivity percentage of Tesco is
below the normal business range.
Opportunities Threats
 They can have a strategic alliance with
other organisations as well as admired
firms which will offer them more
products and captivate more customers
within target market.
 In countries where Tesco is not
performing up to the mark there they
can have joint venture as local firms
will aid them within market intelligence
and research to improvise their
performance areas (Song and Wen,
2018).
 Tesco have their own mobile
application for their online shoppers, it
must be upgraded and feature for home
delivery must be provided.
 They can expand their operations in
country like South Korea, Indonesia
and Turkey as these markets possess
potential for growth.
 Credit crunches and economic
recession will threaten profitability as
well as market shares across the world
which will minimise number of
purchases which are being made by
their customers (Turnip, Wahyuni and
Tanjung, 2016).
 Competitive threats from global
retailers who may offer same products
at low prices and with different
varieties.
 Labour threats with respect to enhanced
wages as well as benefits will add up
cost basis for Tesco which will make
pressure on their pricing strategies.

Secondary Investigation:
As per Bernard Marr & Co. (2019), it has found that Tesco has made use of effectual
strategic performance management framework that is referred to Corportae Steering Wheel.
Through its assistance, firm can efficaciously align each person as well as formulate plans along
with procedures for organization vision. This will aid Tesco Plc within management and tracking
delivered strategies. It will also enable them to take into consideration all the positives and
negatives influences on their presentation levels (Van Uum, Verhoeff, and Peeters, 2016). It is
essential to amend alterations with respect to these aspects while rendering business activities.
Tesco’s Steering wheel involves four major points; they are people, customer, finance and
operations. Each of them have their own crucial objectives. These are illustrated in the figure
illustrated beneath:
Illustration 1 Steering Wheel

Recommendations
The goal of firm is not only to be successful within the market but also sustain within
longer time frame. With reference to Tesco, they are known firm and also have relevant
customer. If firm wants to successful then it is necessary to look forward for options through
which they can enhance their brand value within the market. It is recommended that Tesco Plc
can expand their operations in other countries with new product list or by updating their existent
services to stand out from their competitors as well as accomplish needs of the market. They can
also revise price of services, packaging and many other aspects. This will aid firm to have
competitive edge above their rivals. Along with this, performance of competitor brands has to be
evaluated from time to time for understanding their strategies and offerings.
Market research is other tool which will aid firm to have insight into different
opportunities along with threats that might lead to influence productivity of firm within industry.
Thus, Tesco Plc must look forward for innovative offerings as well as be unique in some way
from others in the market. Customer services must be creative as it will satisfy them and will also
allow firm to have their loyalty. They can have joint ventures in countries where they are not
successful as it will allow them to have new products but it is essential that firm with which they
will merge must be successful otherwise it won’t be useful for them and it will be wastage of
investment. Through this, unnecessary cost will also be minimized.
It is recommended that firm must opt for more technologies in the way they furnish
services as people have became tech savvy and opt to have services which can be easily
accessed. This is important that they show product portfolio to their customers as they look into
other service providers like Flipkart, Amazon and many others. It is also recommended that firm
must conduct adequate market survey as this will enable them to identify trends and grab as
much as they can for sustaining within market.
Action Plan
Tesco Plc needs to pick up best possible data related with advertising situation by opting
for suitable choice. The products which are being offered must accomplish requirements of their
customers and must not be expensive as well as of low quality. For this, it is necessary to take
into account economic conditions of country in which they are rendering their services while

formulating a pricing strategy. The estimation must be carried out in an efficacious manner. The
activity plan must be incorporated in dispersion techniques. Along with this, appropriate
deadlines as well as time frames must be formulated by which progress of firm can be identified.
It will also aid them to track performance of teams. This will create an affirmative impact on
performance of organization on the whole.
Conclusion
From the above report, it can be concluded that inquiry based learning will not only assist
individuals but also lead firm to grow and attain adequate success. They have acquired adequate
significance over years with respect to peculiar areas. There exist different trends within market
in context of retail industry. It is essential for organizations to opt for them to ensure
sustainability for longer time frame and have adequate sales. This will lead them to have
enhanced profitability. SWOT is being utilized to analyze different aspects in context of their
strong points and limitations, opportunities and threat which may arise any time. It is necessary
to take into consideration all the aspects for being successful within the market. Along with this,
firm need to develop effective strategies.

References
Books & Journals
AKTAMIŞ, H., HİĞDE, E. and ÖZDEN, B., 2016. Effects of the inquiry-based learning method
on students’ achievement, science process skills and attitudes towards science: A meta-
analysis science. Journal of Turkish Science Education. 13(4). pp.248-261.
Buchanan, S. and et. al., 2016. Inquiry based learning models, information literacy, and student
engagement: A literature review. School Libraries Worldwide. 22(2). pp.23-39.
Chu, S. K. W. and et. al., 2017. 21st Century skills development through inquiry-based learning.
Springer Singapore:.
Dobber, M. and et. al., 2017. Literature review: The role of the teacher in inquiry-based
education. Educational Research Review. 22. pp.194-214.
Galan, D. and et. al., 2017. The experiment editor: supporting inquiry-based learning with virtual
labs. European Journal of Physics. 38(3). p.035702.
Marian, H. and Jackson, C., 2017. Inquiry-based learning: a framework for assessing science in
the early years. Early Child Development and Care. 187(2). pp.221-232.
Ramnarain, U. and Hlatswayo, M., 2018. Teacher beliefs and attitudes about inquiry-based
learning in a rural school district in South Africa. South African Journal of Education.
38(1).
Song, Y. and Wen, Y., 2018. Integrating various apps on BYOD (Bring Your Own Device) into
seamless inquiry-based learning to enhance primary students’ science learning. Journal
of Science Education and Technology. 27(2). pp.165-176.
Turnip, B., Wahyuni, I. and Tanjung, Y. I., 2016. The Effect of Inquiry Training Learning Model
Based on Just in Time Teaching for Problem Solving Skill. Journal of Education and
Practice. 7(15). pp.177-181.
Van Uum, M. S., Verhoeff, R. P. and Peeters, M., 2016. Inquiry-based science education:
towards a pedagogical framework for primary school teachers. International Journal of
Science Education. 38(3). pp.450-469.
Online

UK RETAIL STATS & FACTS. 2020. [Online]. Available through:
<https://www.retaileconomics.co.uk/library-retail-stats-and-facts>.
UK retail industry suffered worst year on record in 2019. 2020. [Online]. Available through:
<https://www.theguardian.com/business/2020/jan/09/uk-retailers-suffer-worst-year-
record-job-cuts-store-closures>.

Appendix
Questionnaire
Questionnaire
Name:
Q1. Are you aware of services delivered by Tesco in retail market? Frequency
a) Yes 30
b) No 10
Q2. Do you think that to deal with trends prevailing within the market
Tesco needs to alter their ways to enhance their performance?
Frequency
a) Yes 25
b) May be 10
c) No 5
Q3. Is Tesco able to accomplish requirements of stakeholders with respect
to return on investment?
Frequency
a) Yes 30
b) No 10

Product Portfolio of Tesco Plc