Current Trends in UK Retail Industry

This report discusses the current trends in the UK retail industry, focusing on the impact on organizations like Tesco. It covers topics such as online and offline retail, sustainability, technology, and customer-based product analysis. The report also analyzes the political, economic, social, technological, environmental, and legal factors affecting Tesco's growth and provides recommendations for the organization.

Inquiry Based Learning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Current Trends in UK Retail Industry.............................................................................................3
Analysis of organization..................................................................................................................5
RECOMMENDATION...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Advancing technology and changing business environment impact and effect on retails
industry trends. Tesco is part of UK retail industry and share large market share of it and also it
provide products according to current trends for example increasing health consciousness among
customers increase demand for organic products. The report highlights changing trends in UK
industry related to customer, product, market and technology. Report also effects of macro
factors on organization such political, economical, social, technological, environmental and
legal. In the end recommendation describe the ways in which organization focus on success or
survive.
Current Trends in UK Retail Industry
There are various kinds of trends that UK’s current retail markets facing for example
advancement in technology decrease buyers in the shop and on the other customer save time by
purchasing from online website or app of organisation (Littlechild, 2017). Retail industry has
different types of current trends, namely Online and offline retail are coming together,
Sustainability is more important than ever, Social media is a key part of the purchase journey,
and Efficiency is changing retail from the inside out
Online and offline Retail stores:
UK is one of the advance and fast life country. Everyone is busy in schedule life so it will
difficult for them to go in the store and join queue to purchase product. UK’s customers now
days started using organization’s app and online platform to purchase product for day to day life.
It saves times in going into store and waiting for selection of product because of large number of
consumers and hence online stores helps in time saving. According to increasing trends of
online purchase various companies started providing facility of online stores. In this customer
have multiple choice of product from various companies in different range and price and hence
customer can purchase according to its money capacity and demand. However, online purchase
trend is limited with some of working classes and youth and on the other hand stills various
consumers appreciate in tangible connections of physical stores. Reason behind purchase from
store is 5day working routine of consumers and hence break from this routine can be possible by
increasing shopping habit. Another advantage of purchasing stores, it promote social standards of
human life and positive effect on health and hence decrease people from isolation and
depression.
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Sustainability is more important than ever:
Increasing health consciousness and health awareness among UK customers increase
demand for sustainable product. In the past prices were high for sustainable product supply to the
customer but advance technological and scientific world decrease or maintain cost of all
sustainable products equal to other product. Prices of organic product are decline and hence all
kinds of customers can purchase them. Again boycott of plastic bags by UK voluntary
organization impact on providing paper bags which can be recycle. Varieties of eco-friendly
products are available for consumers and hence sustainable life motivation increases. Fear of
health issues and other effect of inorganic and non eco-friendly food also increase demand of
sustainable product (Vu, 2016). Health awareness programs by government and advertisement of
eco friendly product again encourage customers for purchasing sustainable product. UK market
research focus that eco-friendly product is future of retail industry. Eco friendly product is key to
retail success in changing world and by following sustainable trend organization create unique
brand and attract large number of customers.
Advancement in technology:
UK is one of technological advance country in the world and hence it gives support to
changing technological trends in retail industry (Heller, 2017). Various retail company increase
their efficiency, quality and productivity by adoption of technology in the retail shops for
example online stores’ supply chain management to provide delivery of product on the times.
GPS and efficient transport and connectivity system decrease time of delivery and hence increase
customer satisfaction level. Increase threat from terrorism becomes one of the challenges for all
kinds of industry and hence different type of security system is adopted in the store to ensure
security of the customers. Another advantage is that retail industry is getting much more output
for the same input. It decreases cost and time of organization management.
Advertisement and Digital marketing:
Advertisement and digital marketing such social media promotion of production increase
and influence large number of customer’s for organization’s product. Research show that there is
increase impact of digital marketing and hence any organization product can rise to much higher
level through digital marketing. Maximum numbers of customers are available on social sites
such as facebook, instagram, youtube, snapchat and twitter. Various retail companies focus on
social media marketing and invested it to attract large number of customers. Company provide
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details and feature of product with advertisement to attract customer and customization by
trained marketer again influence customers for product purchase. Online stores of company
again give comprehensive detail about product with range of product. In short digital marketing
is future of advertisement of retail industry product.
Consumer based product:
In old days company sells product according to its own analyses but now trend shift to
customer base analyse of product. UK customers taste and trend changes continuously for
example earlier they consume no eco friendly product but with changing time demand of
sustainable product increases among UK customers (Solutions and Belt, 2017). Changing taste
and trend gives opportunity to organization for selling new product such as organic which protect
from health issue. One stop shopping habit of UK customers leads to increase range of product in
retail stores.
Analysis of organization
Tesco is one of the highest market share organization in UK’s retail history. However,
growth of organization influence from various factors such as political, economical, social,
technological, environmental and legal.
Political Factor:
UK‘s politically stability effected from BREXIT, consecutive 3 Prime minister of
changes after Britain exit from European Union. Each prime minister comes up with new policy
for various kinds of industry in the country. Tesco is also suffering from various kinds of
political changes in country and growth and expansion of organization cannot be possible in
unstable government (Fatricia, 2017). It is assuming that new Prime Minister Boris Johnson will
help retail industry with new policy and procedure. BREXIT also increase cost of raw material
that Tesco imported from UK and again decrease in European tourist also effected on revenue of
the company.
Economical factors:
After BREXIT new economy policy of various ministers has various positive and
negative effects on Tesco; for example new government policy favour most of new entrepreneur
and on the other this new entrants decrease customer of Tesco by cutting price because of tax
relaxation. COVID affected on job of various workers and hence losing job decrease their
capacity of purchase. Increasing unemployment and inflation rate because of COVID and
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BREXIT is another reason for fall in the numbers of Tesco’s customer (Jones and Comfort,
2019). However, government decided to help lost workers with half wages support which can
again raise Tesco’s customer’s capacity of purchase.
Social factors:
There are number of social factors influence growth of the organization such as diversity,
taste and trend etc.UK customer’s welcome new taste and trend for example increasing health
consciousness change their taste towards organic product. Tesco provide variety of organic
product to customer and hence it able to manage market share in this respect. UK customers
welcome new market and new product and hence it is difficult for Tesco to decrease new
entrant’s threat. Tesco provide variety range of product with variety and hence it favours one
stop shopping habit of UK customers. COVID effect on the habit of store shopping of UK
customer and Tesco’s online store with one of the best supply chain management help them in
such pandemic to purchase product.
Technological factors:
UK is one of technological advance country and hence it technology gives opportunity to
various industry in expansion of business. Tesco adopted various technological changes in the
organization and hence increase its efficiency, quality and productivity. However, cost of
technological changes effect on market development of the organization and on the other side
company have less talented and skilled workforce for such changes. Supply chain management
of online stores of Tesco benefited from such technological changes and hence increase customer
satisfaction level in terms of timely deliver product.
Environmental factors:
Company has to adopt various environment policy design by the government and it
increase good-will of Tesco. However, this environment policy decreases financial capacity of
the organization. Tesco invested large profit of fund for CSR for example it planted various trees
in different part of UK with its Tag (Souza-Monteiro and Hooker, 2017). Planting trees improves
environment and on the other hand its tag create publicity of the organization with good-will.
Company also focuses on providing eco-friendly product and it ban plastic bags in the
organization.
Legal factors:
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There are many litigation implement in organization to protect the customers and also it
increase loyalty of the customers. Company design its policy by considering government’s rules
and regulation such as Employment act, Anti Discrimination policy, Disable act, Equal wages
act. Laws protect employees in the organization from isolation and depression also it focuses on
personal growth of the employees (Putra and Muzakir, 2020). By this law Tesco is able to gain
loyalty of employees and increase efficiency, quality and productivity.
RECOMMENDATION
There are many changes which can be implementing in Tesco to increase its market share
and attract large number of customers. Company is technological advance in UK but lack of
trained and efficient worker effect on productivity, quality and efficiency. Proper training and
development programs by the organization can help in improving skills of the employees and
hence company can gain competitive advantage. It also increases output of the organisation for
the same input. Post COVID has various effects on taste and trends of customers, they avoid
store shopping and this can benefit organization by more improvement in its supply chain
management. Most of the customers in Britain influence by digital marketing such as social
media ( facebook, twitter, youtube, instagram etc.) and hence company can take it as opportunity
by investment and innovation and creativity in this trend. Company is one of the largest market
share organization in retail industry of UK and hence financial it’s much stronger than any other
organization. Company can invest in market development in different part of UK attract large
number of customer. Collaboration with various kinds of celebrity in the country for organization
promotion is another method company can adopt to attract large number of customer and hence
increase its market share. Increasing health consciousness and environment protection awareness
among England’s customer gives another opportunity in expansion of its organic product.
Company’s organic product development is limited to few stores and hence company can offer
this product in different stores to attract large number of customer. Range of organic product is
limited in company and in UK but company can export various kinds of products from outside
country to satisfy demand of diversity. Eco-friendly’s product is future of retail industry and
hence investment and promotion of this can become opportunity for the organization. For better
Transportation and connectivity company can look into other option too apart from same routes
and by this company will be able to improve supply chain management. Company faces
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competition from various retail companies in terms of price but it can gain competitive
advantage by using fluctuating price. Company can also various discount cards to new customer
and loyal customer card to old customers and hence it increase loyalty of customers towards
organization. Greeting for birthday, festivals etc. by phone or text can help the organization to
maintain customer relationship. Continue investment in technology can decrease financial
capacity for the organization and hence selective and needful technology can help in maintain its
capital for market and product development.
CONCLUSION
To be concluded proper market analysis and adoption of new changes can help the
organization in increasing quality, efficiency and productivity. Report describe various kinds of
current trends in UK retail industry for example large number of customer attracted towards
online shopping and hence retail companies started website and app for its product sales. Report
also emphasizes that eco-friendly product sales rapidly increase due to health awareness among
Britain’s consumer. However, company has various positive and negative impacts from external
factors such as political changes and BREXIT increase raw material cost from UK as discussed
in report. Social taste and trends also explained in report such as one stop shopping largely
benefit organization because of its range of product under one shop. Company can focus on
technological changes and eco-friendly product for future sustainability.
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REFERENCES
Books and Journal
Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan.6.(02).pp.69-86.
Heller, F., 2017. Technological innovation applied to walmart and tesco’s supply chain (Doctoral
dissertation).
Jones, P. and Comfort, D., 2019. Stories and Retailer Brands: A Study of the UK’s Leading
Retailers. Indonesian Journal of Contemporary Management Research.1.(2).
Littlechild, S.C., 2017. Competition and price controls in the UK retail energy market. ACCC
Network.pp.1-10.
Putra, Z. and Muzakir, M., 2020. Competitive Environment Analysis in Global Retail Companies
Operation Strategy: A Data Envelopment Analysis (DEA) Based Approach. AFEBI
Management and Business Review.4.(02).pp.72-92.
Solutions, I. and Belt, G.B., 2017. THE IMPACT OF STRATEGIC MANAGEMENT AND
STRATEGIC THINKING APPROACHES ON BUSINESS PERFORMANCE OF
COMPANIES OPERATING IN THE RETAIL INDUSTRY.
Souza-Monteiro, D. and Hooker, N., 2017. Comparing UK food retailers corporate social
responsibility strategies. British Food Journal.
Vu, M., 2016. IS THE BALANCED SCORECARD USEFUL IN A COMPETITIVE
INDUSTRY?: Using Tesco PLC as a case study in the UK grocery retail industry.
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