Impact of COVID-19 on Consumer Retail Demand and UK Government Policies for Economic Recovery

Economics for Business
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INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Supply and Demand analysis to determine the factors impact on consumer retail demand........3
Task 2...............................................................................................................................................7
Governmental and Economic policies of UK for economic recovery from loss of consumer
retail spending..............................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
According to the analysis it has been identified that approximately the entire business sector
in all around the globe as affected due to the outbreak of corona virus that negatively impact
upon the growth, development and sales of organisation in every sector. In addition to this, it has
been identified that covid-19 also affected customers shopping behavioural pattern that will have
long-term impact upon business operations strategies (Donthu and Gustafsson, 2020). This
makes organisation to undertake advantage of attractive strategies in order to influence behaviour
pattern of customers. It is also essential for organisation assure that long-term sustainability in
respective industry segments. Furthermore, according to the analysis it has been evaluated that,
B2B, E-Commerce and B2B all the essential segment in retail industrial sector is severely
affected due to this pandemic.
In this report formative discussions has been included on the data and information which is
essentially required by organisations to have proper understanding of the extent at which retail
brands is affected over the past few months due to the lockdown and covid-19, as to have
effective awareness of this aspect supply analysis technique, information and demand analysis is
being undertaken in this report. With the help of this organisations can evaluate the extent of
negative impact along the positive shift in demand for retail goods and services. In addition to
this, present report also ensures UK Government strategies, economic policies and measures by
which organisation can effectively overcome with the loss of covid-19 impact.
Task 1
Supply and Demand analysis to determine the factors impact on consumer retail demand
The income effect and shift in employment –
Employment is seen as an essential factor that has a significant influence upon demand of
products and Services within retail industrial segment. It has been identified that individuals
those who have steady source of income have expectations to continue assure same as they can
be contribution in spending more that can significantly shaped demand curve towards right.
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However in context with unemployment and its gradual increase it can possibly impact of upon
individual, as individuals who are having less source of income can be seen in decreasing their
demands to purchase luxury and necessity good. It will negatively affect upon every segment of
United Kingdom market and can make individual to further loss their job. According to the
analysis it has been identified that there are many segment in retail industry segment in United
Kingdom are engaged in the process of hiring in order to provide to send to customers. As per
the report analysis of BBC it has been identified that in United Kingdom many companies are
making their employees to take voluntary retirement in order to quit that job. It can negatively
affect economy this can affect production in customers purchasing power and can increase
customers demand for retail goods and services that can be their basic command rather than
luxury products.
Price
D1 D2 here, D2 = Rise in demand of food and groceries
D3 D3 = Decrease in demand of other retail goods
Quantities of retail goods
UK regional or local demand factors –
As per the above analysis it has been evaluated that corona virus or covid-19 pandemic have
severe impact upon customers and economics around the world that affect upon growth and
development of all the segments in the entire nation (Richards and Rickard, 2020). Likewise in
the provinces of United Kingdom covid-19 pandemic negatively impacted upon GDP,
employment rate and also essential aspects of economy in countries. It has been identified that
retail industry is a major contributing industry in country growth however this industry is also
being affected by the covid-19 make. It has been identified that food and clothing retail segment
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