Trends in Retail Industry during Pandemic - Analysis of Tesco

Inquiry based learning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Trend in retail..............................................................................................................................2
Analysis of the organization........................................................................................................3
Recommendations........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................9
Interview......................................................................................................................................9

INTRODUCTION
In the recent times, most of the businesses are focused upon their operations because
pandemic affect their business in adverse manner. It has a direct impact upon the retail industry
because lockdown decreases the overall functioning of a business in adverse manner. Similarly,
the chosen firm for the report is Tesco, one of the leading supermarkets in UK. It offers range of
grocery products, cloth, financial services, home-décor etc. The report will describe the trends
within retail industry and through interview, study will perform analysis of an organization
during pandemic. Lastly, it will recommend the ways through which company will easily
improve their overall business performance.
Trend in retail
2020 has been one of the most challenging year for the retail industry due to pandemic
because retailers have to make extra efforts in order to retain their customers. However, the
challenges presented by pandemic reflect that 2021 will be completely relied upon innovation
and technology related trends. Therefore, some of the trends are as mentioned below:
AR powered shopping experience: Such technology started from last many years, but
due to pandemic most of the retailers would understand the importance of using Augmented
reality (AR), machine learning (ML) and artificial intelligence (AI). Most of the shoppers
continue to rely on the online shopping during pandemic and retailers took benefit of the
situation by using AR technology in order to bridge the gap between digital and physical. For
example, Shopify introduced Shopiy AR which is an easy to use toolkit for business to create
their good experience to showcase their products to customers. Results indicate that this work
and it also helps to increase 94% higher conversion rate (Retail industry in 2021: top five trends
to look out for, 2021).
Eco-friendly shopping: Covid-19 has changes the customer buying behavior and that is
why, consumer becoming increasing aware of how to protect the environment by using
recyclable products. In 2021, Tesco expects to collect and recycle 1000 tonnes which is a great
initiatives performed by the company to create awareness (Stewart, 2021). Also, company stop
using plastic bags many years ago and also run many campaigns in order to create awareness

among people. That is why, customers prefer Tesco as one of the most renowned supermarket
whose aim is to think about society and environment along with business’s growth.
Virtual dressing rooms: Another trend used by the retail industry during pandemic that
increases the sales of the company by 20%. It is drive from AI and VR, used by the global retail
giants like Macys and Adidas (Wei, 2021). Now, Amazon is also involved Virtual dressing room
development in order to boost the market share. Due to Covid, customers faces troubles in trial
rooms and to solve the issue, companies are tie up with advance technologies in order to provide
better experience and stop the spread of virus among them. So, it can be stated that it provides an
ability to sample and model the products remotely.
Home deliveries will rely on technology: it has been examined that online shopping has
seen an exponential increase in 2020 onward due to pandemic, due to closed of physical stores.
So, in online boom retailers start thinking to offer home deliveries would be the best option to
increase sales (Al-Suraihi and et.al., 2020). For that, they most of the retail giant also include
self- driving deliveries and drone deliveries for their customers. For example, Walmart also uses
the self-driven cars in order to deliver the grocery to one of their customers. Thus, it can be
stated that Covid has had adverse impact on the retail sector, but it completely transforming the
shopping experience.
Focus on the personal health and self-care: It can be stated that pandemic change the
items that online shoppers prefer to purchase. During first wave of pandemic, attitude of people
heavily focused on purchasing personal health products. Research entails that 34% of the
consumers increases their purchase of personal hygiene products (Foster, 2021). In order to meet
the demand of the customers, retailers add variety of the healthy products and also, online
grocery brands prioritize to support the healthy lifestyles for their shoppers and employees. Also,
customers are modifying their personal habits such as cleaning more surfaces, increasing their
hand washing due to Covid-19. Thus, retailers should consider this as an opportunity and also
increases the online selling as well so that it would create a positive impression upon the
customers.