Retail Trends and Analysis of Tesco Plc

Inquiry Based Learning
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Table of Contents
Introduction......................................................................................................................................3
Retail trends.....................................................................................................................................3
Analysis of the organisation.............................................................................................................4
Aim of this report...................................................................................................................4
Objectives of project...............................................................................................................4
Swot Analysis..................................................................................................................................5
Recommendations............................................................................................................................7
Action Plan.............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................10
Questionnaire........................................................................................................................10
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Introduction
Present investigating report is specifically based on a particular business organisation i.e.
Tesco Plc. Basically, this assignment is going to be enclosed with financial performance of a
company and also it will consider a particular objective which is shareholders of this
organisation are specifically rewarded appropriately or not with all the risks that are taken into
consideration and investments as well (Silm and et. al., 2017).
Retail trends
According to Retail Economics, (2020), retail industry of United Kingdom consists of a
total value of £394 Billion in terms of sales (2019). Including this, if it is talked about employees
that are working within the United Kingdom's retail industry then it is carrying the numbers of
around 2.9 million. Also, Proportion of consumer spending that goes through retail is 1/3, which
means this sector is considering one of the powerful influence over United Kingdom's growing
economy. On the other hand, online proportion of retail sales done by this industry in the year of
2019 is approximately 19%. Also, growth percentage of retail sales of different products and
services offered by different business organisations and more has performed is approximately
3.4%. Away with this, total number of VAT-registered retailers within United Kingdom is
around 209,000 (2019) also, if it is talked about the retail outlets and supermarkets then these
numbers are 306,650. Also, amount retail generates of total GDP (GVA) is around 5%. Including
this, it is said that average annual growth of online retail sales in 2019 was approximately 10%.
Lastly, online sales of retail industry due to Big Four Supermarkets and other famous retailers
has helped in rising three fold in the last 10 years which is around 324%.
On the other hand, if it is talked about retail industry challenges, then it is said that due to
this, retailers were facing different changes, which can be considered as trends (Lazonder and
Harmsen, 2016). The primal trend that came in front in this industry is shift of consumer's
mindset from offline shopping to online where customers also changed their spending nature
(much more cautious) as well, which triggered number of economic uncertainty along with the
concerns about business environment..
Away with this, major challenge that was faced by retail industry was Brexit, where twice
United Kingdom faced the prospect of a no-deal Brexit. This impacted upon demand of different
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products and services within the festive period (end of 2019). Therefore, this particular situation
can effectively be considered as a situation of political instability. Also, it is said that 2019 was
the worst on record for British retail industry, with sales falling for the first time in 24 years as a
dire performance on the high street dragged down the sector. Along with this, if it is talked about
the market trends that are running within today is international market then sum of these are
mentioned underneath:
 Prioritizing experiences over shelf space: most of the business organisation has kept
their focus on using artificial intelligence and other updated technology and this is
specifically done to grab the attention of customers who are tech savvy and stay is
connected with internet and other updated sources which may help them in making their
lives easy (Chu and et. al., 2017). Taking online brands offline in creative ways: many business organisations that are
already dealing with the online market has started reaching to the grounds and started
opening physical stores among different areas within the country or among the areas in
which they have already expanded or willing to expand (Siayah, Setiawan and Van Bee,
2019). This current retail market trend has helped these organisations to who reached two
different homes and offer them with the rental amount where they have taken a place to
show the furniture, other products within the house and make customers believe that the
product is going to look like in the same way in which it has been showed.
Analysis of the organisation
TESCO PLC, is one of the famous and largest British multinational groceries and general
retailer, who is offering customers with high quality products and services at lower prices.
Basically, this organisation was found in the year of 1919 by Jack Cohen and headquartered at
Hertfordshire, England, United Kingdom. This organisation is said to be third-largest retailer in
terms of world measured by gross revenues. Along with this, if it is measured in the terms of
revenues then this company is coming on ninth positions as the largest retailer in all over the
globe.
Aim of this report
 To analyse the business and financial performance of a company. A study on Tesco Plc.
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