Inquiry Based Learning: Current Trends in the Retail Industry and Analysis of Sainsbury's

This document discusses the concept of inquiry-based learning and its application in researching current trends in the retail industry. It analyzes the business model of Sainsbury's, the second-largest supermarket chain in the UK, and provides recommendations for the company to adapt to the changing retail landscape. The document covers topics such as AI in retail, autonomous deliveries, machine learning for demand forecasting, focus on personal health and self-care, and the rise of ecommerce grocery platforms.

Inquiry Based Learning

Table of Contents
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
Current trends in the retail industry................................................................................3
Analysis of the Sainsbury’s............................................................................................5
Recommendations.........................................................................................................7
CONCLUSION...................................................................................................................9
REFERENCES................................................................................................................10

INTRODUCTION
Inquiry based learning is an approach of learning that place emphasis on role of
students in learning process. In this inquiry based project research will be carried out
about current trends in retail industry and on the basis of this Sainsbury’s will be
analysed and recommendations for Sainsbury’s will be given. Current trends are those
that are popular at given time in retail industry and are being emphasised by businesses
and liked by customers. Sainsbury’s is second largest chain of supermarket in UK and
has around 16.0% share of supermarket sector. Sainsbury’s was founded in 1869 by
John James Sainsbury and is headquartered at London, UK.
MAIN BODY
Current trends in the retail industry
AI increasingly customer-facing across the retail industry
This is one of the retail trend in which major retailers are using AI (Artificial
Intelligence) driven big data for analytics which enables decisions about what should be
stocked in stores and how they can drive efficiency in logistics. In addition to this
technology now is being used in front rather than driving from back and have become
customer facing. This means that virtual assistance and chatbots are becoming new
norm in retail industry (Granata, Moretta Tartaglione and Tsiakis, 2019). Robots are
also being used by organisations in retail industry and AI has become very important
technological element for growth of retail industry. Voice recognition technology
powered by AI has improved to the point where it can add value both in-store and also
on e-commerce app.
Autonomous deliveries and fulfilment
This means that because of changes in customer behaviour and also in change
of behaviour of retail industry autonomous deliveries will come at forefront. In this self-
driving delivery vehicles and drones will come to life. This is because contactless
deliveries have become very important and along with this, online ordering is also
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increasing. This has become more important and demanding after spread of
Coronavirus and through contactless delivery likelihood of people carrying virus also
reduces. This is also a way through which people can have trust and acceptance of
online shopping as they remain safe. Retail industry is placing strong emphasis on
airbourne delivery drones and self-driving delivery vehicles for fulfilling delivery from
consumer homes and fulfilment centres.
Machine Learning for Demand Forecasting
Adequate demand forecasting is a very important element through which
excessive stock can be avoided and in addition to shortage of stock can also be
avoided through adequate demand forecast (Verma, Malhotra and Singh, 2020).
Demand and supply in retail context has been significantly affected in Covid-19 in which
significant demand and supply fluctuations were experienced by retail industry. Machine
learning can help retail industry in predicting demand and take advantage of shifts in
demand. Data is essential for forecasting demand and this is why it is important that
machine learning is used by retail industry because large amount of data cannot be
used and predicted without application of technology. This is why machine learning for
demand forecasting is being used by retail industry.
Increased Focus on Personal Health and Self-Care
This is also a trend and retail industry and organisations like Sainsbury’s are
likely to get affected by this. This is why it is important that organisations in retail
industry have their focus on products that can cater requirement of individuals in terms
of personal health and self-care. This means that consumers’ behaviour in terms of
preference in purchase has also changed. Because of current conditions in which
individuals are experiencing significant crisis based on health related issue, their
attitude has shifted and they have become more concerned about their health and this
led to increase in demand of health products (Kaur, Arora and Bali, 2020). This requires
that retail industry and organisations like Sainsbury’s increases their focus on health
and self-care products. It has become very important that stock for personal health and
self-care products are adequately maintained by Sainsbury’s.
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Ecommerce Grocery Platforms Are the New Norm
Ecommerce grocery platforms refer to ordering groceries online and through
Ecommerce and currently this have become a norm in retail industry to order groceries
online. This means that during pandemic ordering groceries became requirement for
customers and now it has become a norm and trend that groceries are being ordered
online (Ying and et.al., 2020). This is why for retail industry it is important to consider
how it can be used for the advantage of the business. For Sainsbury’s it is very
important trend that needs to consider by the business for ensuring their success in
retail industry.
Analysis of the Sainsbury’s
Business model refers to core strategy of the business or company that business
uses for profitability. Business model generally uses information like products and
services and how they plan to sell and their target market. Business model involves
pricing and costs of the business. Business model of Sainsbury’s is designed in a way
so that it can create value for shareholders, customers and colleagues in present as
well as in future. Sainsbury’s create value for customers, which is a way to sell their
products to target market (Keiningham and et.al., 2020). Sainsbury’s do this by listening
to customers and anticipating needs of customers. Sainsbury’s deliver value to
customers in form of quality products and great value through multiple channels. In
business model of Sainsbury’s elements that make them different includes supply chain,
logistics and channels. In business model of Sainsbury’s supply chain is very important
and Sainsbury’s source Sainsbury’s branded products from UK and over 70 other
countries as per ability of suppliers to meet quality of Sainsbury’s. Logistics is also very
important element of business model of Sainsbury’s and this involves significant
investment in logistics capability and capacity. This is done to ensure that Sainsbury’s
can meet requirement of customers for flexible and convenient shopping. Sainsbury’s
and Argos operates 34 distribution centres. Through these distribution centres stores
and online businesses are covered by Sainsbury’s. Channels, is another important
element of business model that differentiate Sainsbury’s. In this multi-channel
proposition of Sainsbury’s enable and give people flexibility so that they can shop from
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Sainsbury’s whenever and wherever they wish. Along with offline stores Sainsbury’s
also enable customers to shop online through mobile app. According to Sainsbury’s,
their 20 percent sales originate from online channels of Sainsbury’s. Concerned with
this cost and expenses of Sainsbury’s occur in management of supply chain, multiple
channels and logistics (Arouche and Balaj, 2020). These are also factors that enable
Sainsbury’s generate return.
Concerned with this Business Model canvas of Sainsbury’s is as follows-
Key partners
Farmers
Growers
Suppliers
Key Activities
Sourcing
Supply chain
management
Supplying
Transaction with
customers
Value
proposition
Listening to
customers and
accurate
anticipation of
needs
Quality products
Great value for
money paid by
customers
Customer
relationship
Relationship with
customers is
managed
through online
and offline
channels
Customer
segment
On the basis of
segmentation
Sainsbury’s
customer
segments involve
people of all age,
gender,
demographic
sectors and
psychographic
segmentation
Key resources
Financial
Human
resources
Supply chain
Logistics
Channels:
Online channels
through website
and mobile app
Offline through
supermarket and
stores
Cost Structure
Cost structure involves investment in property
and fixed assets and variable cost depends on
demand.
Revenue Streams
Revenue streams for the Sainsbury’s include
revenue generated through transactions with
customers and offline and online sell that
Sainsbury’s make.
Regarding business model of Sainsbury’s and consideration of current trends by
Sainsbury’s it can be said that Sainsbury’s has adopted and increased online
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commerce. This has been done to increase convenience for customers and for ensuring
that they can flexibly shop for the products that they require. Experience is also very
important and all organisations in retail industry are focusing on providing best
experience to customers and this is why it is important that Sainsbury’s also works on
best experience to customers (Xiao, Chen and Yu, 2021). This is why Sainsbury’s is
also working on providing seamless experience to customers. Sainsbury’s is doing
through increasing investment in digital technology and by integrating physical platforms
and digital platforms. In this through Google and Alexa customers can discover products
of Sainsbury’s.
Recommendations
On the basis of discussion carried out regarding current trends in Retail Industry
and practices of Sainsbury it can be said that it has considered new trends in several
ways in which experience and increasing digital presence are most important. However
in order to continuesuccess of organisation it is important that several other elements
and current trends are considered. On the basis of this recommendations for
Sainsbury's are-
Artificial Intelligence and machine learning have become very important part of
organisations when it comes to digitalization and investment in technology. This is why
it is very important that AI and machine learning are considered and invested in by
Sainsbury's. Machine learning will enableSainsbury's to adequately and appropriately
forecast demand that is likely to be generated by customers on the basis of previous
data of customer purchase in Sainsbury's (Naseri, 2021). Investment in artificial
intelligence by Sainsbury's can also help in improving its customer experience and
feasibility that customers get when they are purchasing in store. An example of this can
be robots to help customers to locate product that they require.
Another recommendation forSainsbury's is that it should also consider and develop
autonomous delivery facilities. This will enable Sainsbury's to increase online
purchasing my customers as there will be no fear of being contacted.This is because in
current circumstances contact of individuals is one of the biggest fear that customers
have and autonomous delivery flow self driving delivery vehicles and airborne drones
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can help and reducing fear of customers and increasing online sale by company.
Autonomous delivery by Sainsbury’s will also provide an important competitive
advantage to company over its competitors considering current trends and behaviour of
consumer.
It is recommended that as eCommerce grocery platform have become new
normSainsbury's place a strong emphasis on increasing its online and e-commerce
activities. this is because increasing E-Commerce activities is an important opportunity
for Sainsbury's to increase its market share and customer base (Okwu and Tartibu,
2020). This requires that additional investment is done on digital and online platforms
ofSainsbury's.
One of the recommendation for Sainsbury’s is that as company is focusing and working
on immediate and same day delivery through are Argos it should increase it effort in
increasing same day or immediate delivery through it all fulfillment centres. This is to
attend growing culture of immediacy in which customers are looking for ways through
which they can get immediate delivery of online order. This is because in current time
young generation expect to receive communication from business in 10 minutes where
as earlier it was expected to hear communication from business in 10 days. This is why
along with ensuring that all consumers are responded in minimum required time their
orders are also delivered immediately and within same date. This will enable company
to increase customer satisfaction and gain competitive advantage over its competitors.
Expansion of market is also recommendation forSainsbury's in which through expansion
of market Sainsbury's will be able to increased its revenue streams. In times of digital
business and online market retail business can expand their business through
digitalization. This means that through online channel Sainsbury’s can increase its
target market in terms of geographical locations where company operate. Sainsbury’s
can increase and decrease and its market and delivers through it fulfillment centres
(Okwu and Tartibu, 2020). Sainsbury's adopted multichannel preposition and using this
preposition company can expand into new markets and enable customers to shop
through different channels. This will enable Sainsbury's to expand easily and provide
benefit of its value to larger customer base.
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CONCLUSION
On the basis of above discussion it can be concluded that there are several
trends emerging in Retail Industry and following and considering this trendscan enable
organisation to take advantage of situations prevailing in their environment. Sainsbury’s
is working effectively and have strategies to utilise the opportunities available in external
environment and to in short how it can take this advantage of trends in Retail Industry.
However there is significant scope of improvement for organisation where it can take
and increase benefits for company through existing trends in Retail Industry.
Considering this recommendations were provided for Sainsbury's is so that it can take
maximum advantage of trends.
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REFERENCES
Books and Journals
Arouche, P. and Balaj, B., 2020. FinTech, an Emerging Industry: An Explorative Study
of Business Model Innovation on FinTech Companies in Sweden.
Granata, G., Moretta Tartaglione, A. and Tsiakis, T. eds., 2019. Predicting trends and
building strategies for consumer engagement in retail environments. IGI Global.
Kaur, J., Arora, V. and Bali, S., 2020. Influence of technological advances and change
in marketing strategies using analytics in retail industry. International Journal of
System Assurance Engineering and Management. 11(5). pp.953-961.
Keiningham, T and et.al., 2020. Customer experience driven business model
innovation. Journal of Business Research. 116. pp.431-440.
Naseri, R.N.N., 2021. Issues And Challenges Of Online Shoppingactivities On The
Impact Of Corona Pandemic: A Study On Malaysia Retail Industry. Turkish
Journal of Computer and Mathematics Education (TURCOMAT), 12(10),
pp.7682-7686.
Okwu, M.O. and Tartibu, L.K., 2020. Sustainable supplier selection in the retail industry:
A TOPSIS-and ANFIS-based evaluating methodology. International journal of
engineering business management. 12. p.1847979019899542.
Roy, S.K., Balaji, M.S. and Nguyen, B., 2020. Consumer-computer interaction and in-
store smart technology (IST) in the retail industry: the role of motivation,
opportunity, and ability. Journal of Marketing Management. 36(3-4). pp.299-
333.
Verma, N., Malhotra, D. and Singh, J., 2020. Big data analytics for retail industry using
MapReduce-Apriori framework. Journal of Management Analytics. 7(3). pp.424-
442.
Xiao, B., Chen, Q. and Yu, Z., 2021, April. Research on the Investment Value of
Sainsbury’s. In 2021 6th International Conference on Social Sciences and
Economic Development (ICSSED 2021) (pp. 108-115). Atlantis Press.
Ying, S and et.al., 2020. Managing big data in the retail industry of Singapore:
Examining the impact on customer satisfaction and organizational
performance. European Management Journal.
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