Recent Trends in Retail Sector: A Case Study of Tesco

This inquiry project explores the recent trends in the retail sector, with a focus on Tesco. It discusses the importance of omnichannel retail strategies, personalized retail experiences, and ethical and value-based brands. The project also includes a SWOT analysis of Tesco and provides recommendations for the company's success.

Inquiry Project
Table of Contents

INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Recent trend in retail sector....................................................................................................1
Analysis of orgnisation...........................................................................................................2
Recommendation....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Appendix: Family and Friends Questionnaire.................................................................................7

INTRODUCTION
Inquiry Based project is basically associated with some serious engagement and
investigation into a worthy question, issues or idea with the main purpose of creating and
building knowledge and enhanced information. The current Inquiry Project is based research
about current trends in the retail industry (Ueno, Sharma and Kingshott, 2017). The company
selected for this assignment is Tesco and to have proper analysis of its external and internal
factor use of PESTEL analysis and SWOT model is made. At last, valid recommendation is also
consist in this project to focus on continuing success and achievement of desired goals.
Main Body
Recent trend in retail sector
Retail industry is considered as most rapidly growing and dynamic sector in which
enormous amount of change are going on as customer behaviour is changing and their needs and
expectations are also going higher (Murray and Caraher, 2019). Thus, it is essential for all retail
orgnisation to remain updated about recent industry trends to ensure success of their business. A
discussion and valuation o these recent trends seen in retail industry are provided below:
Omnichannel Retail Strategies- Omnichannel basically represent a cross-channel content
strategy that are mostly used by an organizations or firm in order to improve their customers
experience and also lead to drive and have a better relationships with their target customers and
audience across all points of contact (Top 5 Emerging Retail Industry Trends, 2020). The
existence of the retailers or any organisation at both digitally and bodily is commonly known as
Omni-channel marketing. A continuous rise is seen in digital consumers especially in retail
industry who likes to look and analysis an item on their mobile or computers before actual
purchasing and buying (Bogue, 2019). Thus, it can be evaluated that in order to maintain their
success and viability retailers need to offer and provide a consistent and parallel buying
experience to customers across both online as well as offline channels. Further, tapping into
mobile shopping is also seen in retail industry that is an innovative way that is leading a unique
shopping experience for retailers through use of specialist electrical and telecommunication.
Personalized Retail Experience- It is also new trend seen in retail industry where
orgnisation are providing personalised product and services to customers. Personalization in
retail is basically associated with the process of using personal data and interest of customers to
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provide tailored experiences and customized experience to shoppers and consumers of products
in a retail environment. The taste, preference and needs of all customers is different thus, it is
becoming a new trend for retailers to have personalization of product based on the needs and
behaviours of individuals customer (Liebowitz, 2017). Use of this key trend consist of more
effective use if advanced strategy like chat-bots in order to increase customer engagement and
have more interaction with them through means of text messages and use of other social media is
and digital media devices that provide updates on orders and better link with the customers to
offer personalised product which meet needs and expectation of each customer.
Ethical and value-based brands- the another trend and change is seen in customers of
retailers industry as they are more attracted toward that orgnisation that are more based on ethics
and fulfil their responsibility and values. Thus, it has been that in recent times that Consumers in
retail sector are becoming more and more conscious of the ethos and emphasis on ethical
implication that exits behind the businesses they buy from. It has been seen that the brands and
orgnisation who have associated themselves with more ethical practices had received and earned
greater turnovers as it is most suitable way to enhanced loyalty and better commitments in
customers (Giri and Chatterjee, 2020).
Thus, on the basis of above discussion it can be evaluated that going online along with
offline stores at diversified locations i.e. Omnichannel Retail Strategies is the most vital trend in
current retail industry along with demands for more personalised products and having better
interpersonally connection with customers is also seen. Besides this, more emphasis on ethical
values and social responsibly is also seen in retail industry in order to attract larger number of
customers through building enhanced loyalty and commitment in customers.
Analysis of orgnisation
Tesco is a well known and highly famous British multinational groceries and general
merchandise retailer which is having its headquarter at Hertfordshire, England, United Kingdom.
It is among one of the largest retail organisation of world having it services across UK, Asia,
Europe and many other parts of world (Evans and Mason, 2018). This organisation basically
deals in Food, Pet care products, Frozen food, Beverages, Bakery products, Home electrical
products, Technology and gaming products, Home and garden products, Toys and car products.
Beside this, some of the stores of Tesco orgnisation also provides Sports and leisure products,
Party and gift products, Baby and toddler products, Health and beauty products, Entertainment
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and books along with Clothing and jewellery for its customers. On the basis of evaluation of data
collected with the help of below stated Questionnaire Following strengths and weakness of
Tesco are indentified that are stated below with the help of SWOT model.
SWOT analysis
Use of this model facilitates a better understanding about the internal strength and
weakness of orgnisation along with information and analysis about the opportunities and threats
that exists in the business environment of an organisation. To get better analysis about the Tesco
orgnisation a description of its strength and weakness along with current opportunities and
threats is provided below:
Strengths Weakness
 Biggest grocery retailer in the UK- It is
the biggest capability and strength of
Tesco that it is considered biggest
retailer store of UK as it has having the
highest sales and revenue as compared
to all other supermarket chains
operating in Great Britain (TESCO
SWOT Analysis 2019, 2019).
 Superior technology usage- The
another competencies of Tesco includes
the fact that it is among those
orgnisation that is famous for making
use of most superior and latest
technology to provided most efficient
and better customers experience to its
customers. For instance it was the first
orgnisation that has introduced a new
and most efficient RFID-enabled
barcode system in order to provide
better and fast customers experience to
customers through making counting of
 Failed operations in the US and
Japan- The recent weakness of Tesco
is the failure of its mega project in US
and Japan that lead to huge losses and
reduction in its viability (Sparks, 2019).
 Accounting Fraud Scandal- The
another weakness of Tesco is
increasing number of frauds and
scandal in its internal business that are
creating a risk of bad image and
hampering its business operation and
brand image (Heese, Srinivasan and
Kelley, 2019).
 Less Operational Profit- Due to recent
Brexit issue the operating profit of
Tesco is rapidly decreasing that is
emerging as a new weakness for this
organisation. Further, because of new
and strict trade policy market share
price of the company has also started
fallen by that is not a good news at it
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the products automatically.
 Efficient supply chain network- The
another factor that contributes in the
strength of Tesco is having a most
viable and efficient supply chain
network that consists of many award
winning brands and efficient and
uninterrupted services.
 Strong Product Portfolio- Having a
wide range of product portfolio and
strong and diversified services across
various segments throughout the world
is the biggest strength of Tesco (Sparks,
2019).
 Skilled and talented workforce –
Employees are the biggest asset and
strength of Tesco theta provide a
positive and customers friendly
atmosphere for consumers that attracts
larger number of customers and is also
helpful in maintaining better
commitment and loyalty with
consumers through ensuring positive
attitude and friendly attitude of
employees.
limit the amount of investors as does
not attract new investors.
Opportunities Threats
 Online shopping- The biggest
opportunity that creating new hopes for
Tesco to have better expansion across
the world is the opportunity by growing
and upgrading its online shopping
 National Economic Crisis- The current
national and worldwide economic crisis
is the biggest threat for business
expansion of Tesco which consists of
taxations, credit, government rules, and
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strategies and use of other digital
modes of business along with services
like home delivery to attract and cater
larger number of customers.
 Alliance with other Brands- The
another opportunity that exits for Tesco
is making alliance and business
partnership with other brands and
famous organisation to have better
reach and assess to other emerging
markets of world.
 Focusing on ethical considerations-
The other strategy that can be adopted
by Tesco to enhance its viability and
success consists of adopting better
ethical consideration in order to
improve its business image and brand
name that would lead to better
commitment and loyalty in customers.
strict regulations.
 High level of competition- The another
threat that is posses by Tesco consists
of cut throat competition prevailing in
business environment of Tesco that is
leading threat for market share of Tesco
and reducing its profit (Evans and
Mason, 2018).
Thus, on the basis of above SWOT analysis and questionnaire used for current
investigation it has been analysed that Tesco is a leading Retailer of UK that is liked by
maximum number of its customers because of efficient use of technology and providing effective
services and experience to its customers along with a range of diversified products and services.
Still, some threats are also faced by Tesco that consist of frauds and scandal along with high
competition and economic crisis.
Recommendation
On the basis of above SWOT analysis it has been find out that several threats and weakness
are encountered by Tesco that consists of Accounting Fraud Scandal and Less Operational Profit
thus, it become vital for Tesco company to look at some better strategies and steps to maintain its
viability and success. With respect to current trends and prevailing opportunity in the retail
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sector and business environment of UK it could be recommended for Tesco that it should adopt
and implement better use of online shopping techniques. Thus, use and adoption of
Omnichannel Retail Strategies is highly recommended for Tesco as it offer a better balance and
coordination between online and offline channel of shopping to attract and cater larger number of
customers on order to enhance its viability and successes across the world. To have better
implication and adoption of Omnichannel Retail Strategies use of some better and advanced
technologies must be adopted by Tesco that offers better customer experience and enriched
connection with consumers through use of online and digital services.
It has been that recently the customers in retail sector are more focused and attracted
towards personalised product and services thus, it is also recommended for Tesco organisation as
it should make changes in its business strategies and should starts providing personalised and
customized products and services to its customers. For this, it is recommended and suggested for
Tesco that it should make use of more enhanced and interactive communication tools like social
media and other digital modes to have better interaction and reach towards needs and demands of
customers, so that better equality and more personalised products could be offered to customers
on order to enhance its viability and success level. At last, implication and adoption of more
ethical prcatises is also recommended for Tesco as it ensures better brand image and enhanced
goodwill for Tesco in order to encounter the weakness of scandals and frauds seen within its
orgnisation. Thus, it is highly recommended for Tesco to fulfil all its corporate social
responsibility and ethical consideration in order to create an enhanced loyalty and commitment
in customers that ensures its success and achievement of goal of expansion.
Thus, going online, providing personalised products and meeting ethical considerations
are the main recommendations that could be made for Tesco to have better business success and
also lead to enhanced viability and expansion.
CONCLUSION
With respect to above inquiry based project it can be concludes that of Omnichannel Retail
Strategies, personalisation of products and meeting ethical considerations are the recent trends
prevailing in the retail industry. Further, it could be analysed that use of SWOT analyses is made
to get better evaluation of an organisation which lead to information about internal strengths and
weakness along with external opportunity and threats.
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REFERENCES
Books and journal
Bogue, R., 2019. Strong prospects for robots in retail. Industrial Robot: the international journal
of robotics research and application.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Giri, A. and Chatterjee, S., 2020. Impact of Fluid Team Performance on Strategic HRM: An
Empirical Study in the Organized Retail Sector of West Bengal. Prabandhan: Indian
Journal of Management. 13(4). pp.25-42.
Heese, J., Srinivasan, S. and Kelley, J., 2019. Accounting Fraud at Tesco Stores (A).
Liebowitz, J., 2017. Thoughts on recent trends and future research perspectives in big data and
analytics in higher education. In Big data and learning analytics in higher education (pp.
7-17). Springer, Cham.
Murray, S. and Caraher, M., 2019. Food Retail and Distribution. Healthy and Sustainable Food
Systems.
Sparks, L., 2019. Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
Ueno, A., Sharma, P. and Kingshott, R., 2017. Exploring the Impact of Self-Service
Technologies on Retail Shoppers: A Multi-national Investigation in UK and Australia. In
11th Great Lakes NASMEI Marketing Conference.
Online:
TESCO SWOT Analysis 2019. 2019. [Online] Available Through:<
https://bstrategyhub.com/tesco-swot-analysis-2019swot-analysis-of-tesco/ >.
Top 5 Emerging Retail Industry Trends. 2020. [Online] Available Through:<
https://www.mulesoft.com/resources/api/top-retail-industry-trends>.
Appendix: Family and Friends Questionnaire
Anonymous 1
1 How often do you purchase products from Tesco? Why? Which others stores you visit?
o Once a week
o Two times a week
o Once a month
o Sometimes
o Never
I do purchase products two times a week because it is enough to me to get all I need for the
whole week. I also visit Morrison and Asda stores.
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2 How easy can you find the products in the store? What is your opinion about products
display?
When I go to Tesco store, I can find the products relatively easy and products display looks
as good as I expect from a Tesco store.
3 What are the main products that you find good for your needs at Tesco? Which are the
products that you do not buy? Why?
I do buy sausages, milk, eggs, toothbrushes, and shampoos. I do not buy alcohol like beer or
Jack Daniels because there are other stores that offer a better price.
4 How is your experience when you purchase products at this store? How is the
environmental? How helpful is the staff?
I can say that the staff is always helpful when I ask about products offer because they are
very communicative and ready to help the customers.
5 How are products compared to others Tesco store? Please explain. What offers they give
you?
In this store, the products are the same however because this store is not as big as other
Tesco stores,I do not find all the products. Every week I find offers to water and coke. A
bottle of coke is £2 and if I buy two, I get for £3.
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6 Do you like Tesco? Why do you like?
I like Tesco because it is number 1 in United Kingdom as market share and that makes me
think there are the best products.
Anonymous 2
1.How often do you purchase products from Tesco? Why? / Which others stores you visit?
• Once a week
• Two times a week
• Once a month
• Sometimes
• Never
Because I get use to shopping twice a week. I also visit Morrison, Aldi, and Iceland.
2.How easy can you find the products in the store? What is your opinion about products
display?
Positioning the products is very easy for me to find. They have a very good poster, very
pleasant to find quickly which gives essential results.
3.What are the main products that you find good for your needs at Tesco? Which are the
products you do not buy? Why?
A favourite product of mine is the éclair. All beside this product I have 2 products that I
enjoy ... these being pizza and cola. The products that I do not buy are the following; redbull
because it gives me addiction, dero because it is more expensive than in other stores, bread
because some of it is not baked enough and milk because it has a bad taste for my taste.
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4.How is your experience when you purchase products at this store? How is the
environmental? How helpful is the staff?
I feel very good at this shop, I find all my products, I pay them alone and I am very pleased
with the employees.
5.How are products compared to others Tesco store? Please explain. What offers they give
you?
I had an unpleasant experience outside this store where I find fresh products and at a very
good price. I found in other Tesco stores very low-quality products because they were
outdated and close to expiration. At that time there were no convenient offers.
6.Do you like Tesco? Why do you like?
I like Tesco because I almost, can find it anywhere with good value for money.
Anonymous 3
1.How often do you purchase products from Tesco? Why? / Which others stores you visit?
• Once a week
• Two times a week
• Once a month
• Sometimes
• Never
I visit Tesco two times a week because there I find quality products at a good price. Other
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stores that I visit are Morrison, Aldi, and Lidl.
2. How easy can you find the products in the store? What is your opinion about products
display?
The products are easy to find because they are arranged properly, each separately. The
display corresponds to the product
3.What are the main products that you find good for your needs at Tesco? Which are the
products you do not buy? Why?
The main products that I buy are the following: water, fruits, vegetables, and bread. As a
product that I do not buy is meat as the price is high compared to other stores.
4. How is your experience when you purchase products at this store? How is the
environmental? How helpful is the staff?
My experience is positive because I frequent the store and I never had any unanswered
questions or concerns about the products
offers by employees.
5.How are products compared to others Tesco store? Please explain. What offers they give
you?
The products have the same quality as in other Tesco stores where I visited but still in some
stores you do not find offers as one big store. In a larger store, there are offers for water to
juices and even cakes.
6.Do you like Tesco? Why do you like?
I like Tesco because I find quality products at affordable prices and I know it's a reliable
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store with a history behind
Anonymous 4
1.How often do you purchase products from Tesco? Why? / Which others stores you visit?
• Once a week
• Two times a week
• Once a month
• Sometimes
• Never
I use shopping twice a week at Tesco. In this store, I always find offers to water and this is
one of the reasons that I visit. However, I sometimes visit Asda to buy new books to read.
2. How easy can you find the products in the store? What is your opinion about products
display?
Products are well organized in the store that makes me find them easier. The display
products are qualitative as the products
3.What are the main products that you find good for your needs at Tesco? Which are the
products you do not buy? Why?
I usually buy offers products like water, coke, bread, cakes, and fruits. I don't buy any
alcohol drink, snacks, milk, and bathroom detergents. The previously items have a high
price and they do not have offers or discounts.
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4. How is your experience when you purchase products at this store? How is the
environmental? How helpful is the staff?
I would say that in this Tesco store I found best customer service and there is no delay at the
cashpoint. However at machine cashpoint sometimes it could be difficult because the
barcode of the item does not work well.
5.How are products compared to others Tesco store? Please explain. What offers they give
you?
Usually are the same however I met other stores that were low quality because there were
out of power the machine that should keep them fresh. Tesco groceries half price to some
products.
Pizza Co. Meal Deal - Buy 2 Pizzas + 2 Sides Or Desserts + 1 Dip Stacker For £10
6.Do you like Tesco? Why do you like?
I like Tesco because has many stores, has products offers and its employees are well
educated and always to help the customers.
Anonymous 5
1.How often do you purchase products from Tesco? Why? / Which others stores you visit?
• Once a week
• Two times a week
• Once a month
o Sometimes
• Never
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Sometimes, It, because I don't have a Tesco near to my house and the products, do not have
a quality for the value of the money. Other stores which I visit are Sainsbury and small
shops on the street.
2. How easy can you find the products in the store? What is your opinion about products
display?
The products are easily recognizable and have a display as quality as the products
3.What are the main products that you find good for your needs at Tesco? Which are the
products you do not buy? Why?
And the reasons why I do not buy cooked meat or meat are because I do not trust those
who do it and the quality it has.
4. How is your experience when you purchase products at this store? How is the
environmental? How helpful is the staff?
I have a weird feeling when I go into the Tesco store where I get used to shopping
sometimes because it doesn't have enough employees to be ready to help you as some
products are higher up on the shelves and I can't reach them.
5.How are products compared to others Tesco store? Please explain. What offers they give
you?
What I have seen until now the products are the same in all the stores that I went to. The
reason, in my opinion, is that all of Tesco's stores have the same supplier. However, there
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are different offers in each store to the products. In this store that I get used to shoop, they
offered me a promotion card.
6.Do you like Tesco? Why do you like?
I do not like Tesco because there is no store near to my house and they do not have products
that other stores has and they decreased the number of cloths products that they had had.
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