Trends in Retail and Analysis of Tesco: A Study

FY028: - Inquiry Based Learning
(CW1)

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Trends in retail.......................................................................................................................3
Analysis of the organization...................................................................................................4
Recommendation....................................................................................................................5
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
The retail industry is expanding at a higher rate and this report is based upon the
retail industry. For this report Tesco is taken as an organization which is a retail giant and it
covers analysing the trends in retail pertaining to the online shopping and then analysing the
organization and forming recommendations.
Trends in retail
Online shopping has become a daily activity for millions of consumers in UK. The
UK buyers have extraordinary expectations with regards to conveyance speed, client
experience and smooth return policies. It is projected that the revenue in the UK e-commerce
is projected to reach £80,678 million in the year 2021. The revenue will be growing at an
annual growth rate of 3.5% for 2021-2025. As per Statista, in UK, 55% of the population
shops online and most of the preferred item is clothes and sports goods. In addition to this,
32% of the online shoppers also purchased deliveries form the restaurants and the catering
services. The items which were least purchase by online consumers were bicycles, moped,
cars while only 10% of the households prefers to buy them online (E-commerce in the United
Kingdom (UK) - Statistics & Facts. 2020). In the year 2020, the retail e-commerce sales of
UK set a record of total USD $180.39 bn in sales which is only third behind China. There has
been a support or reinforcement of digital shopping patterns among UK customers, more than
65 and something else, as the year has advanced. As indicated by a September 2020 report
from ChannelAdvisor, the aim to shop online has become stronger even if the shops had
opened once again. In May 2020, during the stature of lockdown, 42% of UK online
purchasers said they would like to do shopping online more in the coming future. By August,
the month after not so essential stores resumed and opened, that extent had increased to 55%.
As per the poll done by ChannelAdvisor, the people who have bought items online
in the past 6 months has resulted into increase in the response rates for the shopping online.
Also, this online shopping has remained a significant trend in the year 2020 with number of
consumers of 45.4 mn being online buyers in UK which accounts for nearly 81.1 per cent of
the population. It can be clearly seen that there is a digital shift coming within the retail sector
at a faster pace (Nash, 2019). UK is considered as the most advanced e-commerce market in
Europe and in the year 2018, the amount increased to 688.4 bn GBP which was a sharp hike
in comparison to the previous year. on the sectorial basis, the wholesale and the
manufacturing were the sectors which generated higher e-commerce sales in the same year.