Trends in Retail: Analysis and Recommendations for Tesco

This article discusses the current trends in the retail industry and provides an analysis of Tesco, along with recommendations for improvement.

Inquiry
Project

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
The trends in retail...................................................................................................................................3
The analysis of the organisation..............................................................................................................5
Recommendations...................................................................................................................................8
CONCLUSION...........................................................................................................................................8
REFERENCES..........................................................................................................................................10

INTRODUCTION
For every company it is essential to conduct their business operations and functions
according to the current trends as that will help them in sustaining at the potential marketplace
for the long time duration. in order to determine the new trends an organization management
need to conduct market as well as industry research and they also need to identify whether they
are capable for adopting new trends or not (Al Mamun, Lawrie and Wright, 2020). Organization
selected for respective project is Tesco which is operating in retail industry from 1919 and it is
developed or introduced by Jack Cohen. The head office of respective firm is located at Tesco
House, Hertfordshire, England as well as its business is nested at the several locations such as
United Kingdom, Ireland, South Korea, India, Hungary and so on. The respective organization
offers their products through several different aspects such as supermarket, hypermarket, and
superstore and convenience shop. The primary aim of developing this project is to determine
trends in retail industry, evaluation of organization and to provide recommendation for the
improvement.
MAIN BODY
The trends in retail
The retail sector goes through numbers of changes on regular as that will help them
improving their business operations and practices. in respect of respective industry behavior of
customer also get change in short duration due to which a company need to adopt for the changes
so that they can satisfy their demand and need as well as that will also help them in attaining
desire goal successfully (Amos, Knippels and Levinson, 2020). For company conducting
business in respective sector need to analysis latest trends or updates in the respective industry as
that will help them in making decision as well as plans so that they attain desire goal and
objective successfully. Currently there are numbers of trends in the retail which a company needs
to adopt, from which some main are mentioned below:-
 Omni channel retail strategy – It is consider as one the most important current trends
which is adopt by a company for attaining their desire goal and objective. According to
this an organization will introduce their business at the digital channels because that will

help them in attracting more and more customers which leads to increase in sales
successfully. Moreover it will also help in developing as well as maintaining effective
relationship among the customers and company which help in successfully attainment of
desire goal.
 Offer personalized retail experience – According to respective new trends a company
needs to offer customized products to the customers according to their specific need,
demand and expectations (Becker and et.al., 2020). Moreover, in this company also
provide suggestions to the customer’s taste, order history, location, previous search, wish
list items and so on. in retail industry respective trends can be adopt in simple manner
such as online charting or chart box facility, tele based communication, order updates and
many more.
 Physical store for the digital native brand – In respect of this trends it is essential for a
companies who are conducting business online to adopt for the physical store because
that will help in increase their presence at the marketplace. Moreover, it will also help in
attracting those customers segments who are not prefer to the online products or services
due to trust issues. Through respective trends company able to increase their market
value, market shares, profit ratio, sales and customers base.
 Pop up shop – According to this trend companies need to design their interior in
attractive manner so that they it encourage audiences to come their store as through it
they able to increase their footprint ratio at store (Chan and Pow, 2020). This will also
enhance their sales as well as profitability ratio in effective manner. In respect of this,
store need to adopt colorful theme based interior so that it attract audiences so that they
can increase their sales and profit successfully.
 Private label brands – In respect of this trend, companies operating in respective industry
need to add private label of their brand on each and every products because when a
customer buy an expensive item they want to show it off. So when the label will be
displayable then they preferred to buy those products. Through this trend, an organization
able to attract more customers which leads to increase in sales as well as profitability in
successfully manner.
These are the main trends of the retail industry which are necessary to opt by companies
operating in it because through that they able to grow their business successfully.

The analysis of the organisation
In order to adopt any new trends a company need to conduct analysis of their workplace
because through that they able to develop effective strategies as well as plans according to their
capabilities. Moreover, it will also help them in determining which strategy, plan, technology or
any other aspects are essential for them. Tesco is conducting its business in retail industry at
different locations at the international level by offering wide level of products such as fruits,
vegetables, dairy ideas, and meats and so on (Feldt and Petersen, 2020). Their management
wants to conduct its business analysis because through that they can develop proper strategies
and plans as well as for this they opt for different model which are mentioned below:-
SWOT analysis
Strengths Weaknesses
 Respective company is famous as the
biggest grocery store at the United
Kingdom market.
 They are leading company by having
huge market shares.
 The respective company has huge
geographically presence or diversity.
 Respective company has number of
store which offers wide range of quality
products.
 Tesco has effective supply chain
network which help them in supply
products and services on time.
 Respective company is also famous as
the largest private employer firm.
 Respective company operation plan get
failed in the United State as well as
Japan.
 Tesco has less operating profit as
compare to its target which is mainly
due to financial errors.
 Respective company has poor business
operational performance at the some
specific area (Kang, 2020).
 Tesco also involve in fraud trial as well
as accounting scandal which decrease
their market value.
Opportunities Threats
 Respective company introduce Jack’s
retail store so that will beneficial for
them that they expand Jack discount
 Regular change in market demand is
threat for the respective company as
their management need to develop

store business at the different location
at national as well as international level
(Lämsä and et.al., 2020).
 Respective firm may also conduct
strategic alliances along with the
different brand of the similar industry
for getting more profit and customer’s
base.
 Tesco may also conduct joint venture as
that will help in expanding their
business in effective manner at the
national as well as international level.
strategies and products accordingly.
 There are several other retail companies
which are operating in similar market
that is considered as threat for the
Tesco such as Asda, Sainsbury,
Morrison and many more.
VRIO model
Resources Valuable Rare Inimitable Organized
Food products Yes - - -
Employees Yes Yes - -
Distribution
channel
Yes Yes Yes -
Financial
resource
Yes Yes Yes Yes
Valuable: It refers to those resources which are valuable for the company because through that a
company able to attain their desire goal as well as it also help in attaining competitive advantage
at market (Martín-Gámez, Acebal and Prieto, 2020). In respect of Tesco their valuable resources
are:-
 Food products – It is valuable because respective company offer quality food products
which are healthy and safe for the customers.

 Employees – The employees of Tesco are valuable because they perform in best way
which helps company in attaining their desire target successfully.
 Distribution channel – The respective company distribution channel help them in
delivering products on time and in best way so it is valuable for firm.
 Financial resource – Tesco has huge financial resources which them in adopting every
resource for conducting their work in effective manner.
Rare: It is considered as those resources which are rare in the market which mean no other firm
has the similar resources (Moote, 2020). In respect of Tesco their few resource is not rare i.e.
food products because there are several other firm who offer similar kinds of products. The rare
resources of respective company are:-
 Employees – It is rare because the staffs of respective company are highly skilled,
knowledgeable and experienced. Moreover firm also provide different training facilities
to them.
 Distribution channel – This resource is rare because respective company design it
according to their requirement and need. So it is no chance that any other firm has similar
channel.
 Financial resource – Respective company financial resource is strong which means it is
rare for the other competitive companies.
Inimitable: It refers to those resources which are not copied by other competitive companies
easily at the market. in respect of Tesco their some resource can be imitate by other firm with
less costing such as food products by developing similar to it as well as employees as
competitive company can also train their staffs as well as they hire Tesco employee by offering
more salary (Rached and Grangeat, 2020). Their resources which are inimitable are:-
 Distribution channel – Respective Company develop their distribution channels
according to their requirement and need due to which it is not similar to the other firm as
well as it is costly or expensive to copy.
 Financial resource – It is inimitable because the financial status of respective company is
very strong as they are operating successful business nested at the national as well as
international level. So it is not easy to copy respective resource.

Organized: It refers to those resources which are not need to be organized by a company in short
time duration as these resources are effective and help in attaining competitive advantages
successfully (Tawfik, Hung and Giabbanelli, 2020). In respect of respective company, their
various resources are need to be organized such as food products, employees and distribution
channels but their few resource are not required same in short time:-
 Financial resource – The financial resource of respective company are rare and strong
which is not possible to be copied by other firm easily as well as it is also not need to be
organized in short time duration.
Recommendations
By conducting above analysis related to the current trends as well as company analyzing,
it can be determined that there are some points in which Tesco is lacking which directly impact
on their business growth. Moreover due to it they also not able to adopt perform properly in
some market which influence their enhancement of business at national as well as international
level. In respect of this there are some recommendations for the respective company so that they
can conduct improvement which leads to attainment of desire goal successfully, some of the
recommendations are mentioned below:-
 Respective company must adopt innovative ideas through which they able to make their
food products more effective and attractive such as they may opt for packaging which can
be plant. It is so because now people are attracted toward such time of ideas which save
environment.
 Tesco must conduct their market analysis on regular basis because through that they able
to determine new trends at initial stage which help in conduct planning accordingly.
CONCLUSION
Through the analysis of above mentioned points it can be summarized that for every
company it is necessary that they must conduct analysis of their industry trends as that will help
them in conduct proper planning as well as developing strategies. Moreover it also helps in
determining new technology through which they can attain their desire goal as well as objectives
in successful manner. in addition to this after conducting analysis of trends an organization

management need to conduct analysis of themselves as that will help in determining whether
they are that much capable for adopting change related to trends or not. In respect of this they
may adopt numbers of models, strategies and methods such as SWOT analysis for understanding
their strengths and weakness which help them in attaining or avoiding opportunities and threat
respectively. Along with this firm management may opt VRIO model as that help in determining
valuable resources in successful manner.

REFERENCES
Books and journals
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