Effects of COVID-19 on Consumer Retail Spending in the UK

Economics for business

Executive Summary
The United Kingdom is a free market system, but with state intervention at the stage that it is
required to sustain public health. The United Kingdom has been facing economic instability for
quite some time as a result of a variety of incidents, such as Brexit, but Corona virus epidemic
scare has given rise to economic instability. During the lock-down, numerous constraints were
imposed on individuals, due to alterations in many methods and developments. This study has
two strategic goals: to recognise factors that have an influence on consumer confidence and to
examine their influence and others to list the numerous fiscal plans implemented by the UK
Government to revive the economy and allow economic growth to change dramatically.
In the first segment, the market conditions of demand and supply were addressed with an
emphasis on the price of the commodity that has an impact on consumer buying. Variables such
as state involvement, elasticity, income impact, etc have been addressed. In the second part,
different policies and measures adopted by the authorities to resolve economic instability and
alleviate the burden on people have been addressed. Different methodologies, such as poverty
services and layoff strategies, have been debated.

Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
TASK 2............................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Capital spending comes from the idea of overall monetary force expended by families and
individuals on final products and services in the market, whereas online sales, but at the other
side, relate to the method of measuring consumer demand for manufactured goods over an
amount of time (Aydin, 2020). This idea of consumer goods and its expenditure is a constant
cornerstone of the system. Any intense variations in the trend of consumer demand may have a
major effect on the overall economic condition of the host nation. This article focuses on the
topic of the effect of COVID 19 on the financial environment of all companies around the world.
This epidemic has triggered a serious decline in consumer expenditure in the United Kingdom,
but this is also the reason for all the discussions in this paper. Effects from both sides, positively
and negatively on the trend of market production are addressed with the aid of demand and
supply research. In addition, debates take place in the sense of the different measures taken by
the UK government officials to convince and influence customers to pay more. This induction of
customer behaviour is rendered in such a manner that economic environments can be balanced.
MAIN BODY
Task 1
Factors determining shifts in consumer retail spending in UK due to Covid-19
The United Kingdom has preserved an open market system with a democratic focus, i.e. the
government permits free competition of market forces in supply and demand under usual
circumstances, but gets involved if necessary to stabilise the economy or encourage public
welfare.
Demand and supply function
Economics is focused on the utilisation of finite funds allocated and seeks to establish optimal
sources of use of these resources (Mulhearn and Vane, 2020). There are numerous buyers and
sellers in the close proximity market consumer economy like the United Kingdom. Producers are
seeking to grow and supply goods with scarce money, with an advantage on their rivals. In the
other side, buyers have a wide range of choices to select from. When choosing a commodity,
they forego the value; their substitutes may have given them, which is recognized as the principle
of investment return in economies.