Modern trends in retail

This report discusses the modern trends in the retail industry, focusing on Tesco as a case study. It covers topics such as customer behavior, industry-specific digital trends, and recommendations for success. The report also includes a PEST analysis and SWOT analysis of Tesco. Overall, it provides valuable insights into the retail industry and offers recommendations for businesses to thrive in the digital age.

Modern trends in retail

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1: Modern trends in retail.....................................................................................................1
TASK 2: Analysis............................................................................................................................3
A basic primary data collection by using questionnaire.............................................................5
TASK 3: Recommendation..............................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The report below is based on Tesco that is a retailing company and having work within
general merchandise and groceries. It is a company that is dependent over grocery retailing
industry as with this offer all the different type of product and services to its customers that make
life processing even more easier and comfortable along with having a headquartered in UK
(Ganebnykh and et. al., 2018). The company also having its own website that is named as
www.tesco.com and with this they have offered online services as with this ability to achieve
standardised outcome is achieved in timely manner. Tesco has worked with the mission to be the
champion as it help the customers to enjoy standardised quality products and services for an easy
life.
TASK 1: Modern trends in retail
The current trends in retail sector has induce quick change within this disruption get
accelerated and product consumption also get advanced. The digital disruption is getting
emerged within retailing industry that collectively induce significant growth and success in
systematic manner. It is an industry that didn't afford about the ignorance of tremendous impact
as with this induction of digital technology involved traditional business model as by involving
digital touchpoints. It is a centre stage through which retailer get work on to enhance its
engagement about to engage customers as by reducing its risk taking capacities in prominent
mode. The e-commerce friendly assist POS system as it helps to get cover from COVID
situation that is used to monitor and evaluate optimised services through sales processing. There
are multiple channel that is used by the business to enhance sale as like brick and mortar as well
as e-stores as with sync of invention and promotions (Krasyuk and et. al., 2019). Machine
learning helps the business to forecast future demand and sales that is used to innovate and
optimise supplier relation and customer relationship, logistics and manufacturing that help
business to process smart marketing.
What is the current customer behaviour in retail industry
The customer behaviour is shifted towards augmented shopping and with reference to
Garner it is predicted that around 100 million consumer are shifted towards reality of
augmentation that furthermore reflects towards shopping experiences. Due to the pandemic
situation of COVID 19 isolation has been in priority that increases the virtual lifting demand of
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customers. In this “try before you buy approach is used to attract customers as it allows to get
interact with online products and services. There are different brand that embraced artificial
intelligence that is focused by customers as it allows and provide virtual space under which
significant outcome is achieved in realistic mode with virtual goods and services.
(Source: Gartner 2020)
What are the industry and market specific digital trends
The retailing industry has specific digital trends that is based on data science and
personal interaction in which machine learning is progressed as a personalised tools as it drive
higher sales and more profit. The market trends is used with prospect of machine learning in
which information is collected of about similar customers that help to design and develop
adequate actions about specified buying experience ((Castaldo, Grosso and Premazzi, K., 2020)).
In support of this day by day experience is personalised under which rate of delivery also get
advanced and in addition to this different dealing is offered as by offering is processed with easy
navigation and by tracking order details. The total sales values of retail is about £394 Billion,
total employee in UK retail in 2.9 billion with proportion of consumer spending as of 1/3 and
pertain growth about 3.4% (UK retail stats and facts, 2021).
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Cause of trends
Consumer under pressure
Consumers are offered a package of goods and retail in instinct basis and during the
pandemic attack of COVID the consumer expectation also get changes during which
sustainability concern also get redefine under which goods and retailing landscape is managed.
The retail industry as Tesco get work to connect, adapt and predict neural wiring that help the
business to assist long term success as by managing supply chain. The expectation of customers
always get changes and offer adequate shape that is adapted to thrive market attractiveness. The
optimised reality is processed as with support of usage of digital technologies which tailor
services, products, experience and promotion that collectively processed shift towards
maximisation of personalised demand and supply chain (Santoro and et. al., 2019). Ethical
impact is also be a driven approach that is used to interact with retailer and manufacturer as per
encouragement of different choices and values to shift towards inclusive prosperity.
Prospective solution
Cost reduction
It is a form that is always be a better solution to resolved certain issues that is faced by
customers. In this retailing firms as Tesco make ensure to design and develop adequate strategies
under which cost reduction is always be favoured and with this suitable control towards
manufacturing and its control is processed with perfection and in timely frame. For this company
get controlled in production basis through which brand activation and its understanding about to
resonate customers preference and choice is managed in better mode.
TASK 2: Analysis
Pest analysis
It is an analysis that is defined as external factors that has direct and indirect impact over
the production ability of business with effectiveness (SMOLYANINOVA and et. al., 2018). As
Tesco is a multinational retailing company that has operated in 12 nations all across world along
with this offered services as insurance, finance, mobile, hardware services and many others as
well. It is briefly explained below as:
Political: As Tesco operates its business in different nations that this factors has wider
influence towards working performance of business. It usually include legislation, tax and
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stability as in relation to economic recession and COVID financial conditions get unstable which
induce negative impact over business production.
Economic: In this factor that consist of leverage cost, profit and demand that affect
working standards of Tesco in relation to finance accessibility. For this business induces
internationalisation and diversification for this Tesco develop timely based strategies.
Social: It is related to social trends that reflect advance living standards of customers and
for this Tesco worked to increase selling of non food item as by analysing belief and attitude of
customers.
Technological: It is dependent over technological advancement and for this Tesco
introduce various operational benefits that offer higher advantage to society and its development
(Tartaglione and et. al., 2018).
SWOT ANALYSIS
It reflect internal analysis of Tesco that provide better clarity about strength and
opportunity that advance working standards of business and along with this threat also get
analysed that helps the business to design suitable strategies through which profitable changes is
induced in balanced mode.
Strength Tesco has better internal advancement as with this they are free to drive its
growth and development in easiest manner. The market share of Tesco is highest
among all its competitors which reflect strong performance over continuous
period of instance.
Weaknesses The company is facing rigorous quality measure and complaint of customers and
there is a difficulty to manage inventory production that has negative impact over
saving and profit management (Jelev, 2018).
Opportunity The growth of online grocery and its selling induce better opportunity for
business and with this higher benefits get leverage on continuous basis. In this
artificial intelligence also get improvised as with this productivity standards also
get managed.
Threat Due to Brexit and pandemic attack of COVID supply chain of business get affect
directly that get restrict supply chain of business on direct basis. In relation to
economic recession sales get required to forecast as with this purchasing power
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of customers get affected that induce negative impact over profit generation of
business.
A basic primary data collection by using questionnaire
Q1) What are the different preference of consumer in terms of
shopping?
Frequency in %
a) Online shopping 20
b) Visit physical shop 40
c) Both are same 40
Interpretation: It is interpret from above graph that most of the customers has performed
online shopping and in this 20% customers prefer this while the other 40% customers are those
who believe to visit physical shop and in rest 40% are those who preferred with both the online
as well as store visit as well.
Q2) What are the top platform that is used by customers to processed
online shopping?
Frequency
a) Mobile phones 45
b) PC 20
c) Tablet 35
5
a) Online shopping b) Visit physical shop c) Both are same
0
5
10
15
20
25
30
35
40
45
20
40 40

Interpretation: The above graph reflect that more of the customers preferred online
shopping and for that 45% of customers used mobile phones and rest 20% make use of PC while
the rest 35% make supportive usage of tablet for online shopping.
Q3) Do you looking forward for discount coupon codes while processing
online purchasing?
Frequency
a) Yes 65
b) No 35
Interpretation: It is acknowledge from above graph that most of the customers get
looking forwards for online shopping and for that they have also get attracted towards discount
coupon codes and for this 65% of customers reflect their choice in favoured while the rest 35%
are not having similar point of view.
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a) Mobile phones b) PC c) Tablet
0
5
10
15
20
25
30
35
40
45
50
45
20
35
a) Yes b) No
0
10
20
30
40
50
60
70 65
35

Q4) Do Tesco delivered its goods and services as per expectations and on
timely manner?
Frequency
a) Same day 50
b) Next day 30
c) In between 2-3 working days 20
Interpretation: It has been determined from above graph that Tesco has offered online
delivery and for that 50% of customer get their parcel on similar day, 30% of customers get their
order on next day and the rest 20% are those who believed that they get their products and
services in between 2-3 working days.
Q5) What are the biggest drawback that is faced by Tesco during online
shopping?
Frequency
a) Lack of interactivity 30
b) Scam and fraud issues 35
c) Delay in delivery 35
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a) Same day b) Next day c) In between 2-3 working days
0
10
20
30
40
50
60
50
30
20

Interpretation: It is reflected from the above graph that there are few drawback which is
faced by Tesco as while purchasing online and in this 30% of customer felt that there is lack of
interactivity, 35% felt that there is a probability of scam and fraud issues while the rest 35% are
those who felt that there is a delay within delivery which take certain time as by making online
shopping.
TASK 3: Recommendation
The retailing industry is induce long term success and for that they have induce different
and exceptional changes that pioneer working effectiveness. Tesco induce standardised services
and innovation as with this working efficiency is getting advanced and for this different
recommendation are as explained below as:
 The company get upgrade its hardware, software and processes as per requirement that
aid to make adequate usage of various tools and technique as with this customer
experience is improvised in balanced mode (Ceccato and Armitage, 2018). For this
working efficiency and its effectiveness is advanced in balanced mode as ability to make
sustained control over records is maintained with perfection. It help the business to adjust
point of sale through which inventory and e-commerce is feature is advanced that
moreover assist to advance suitable loyalty in effective manner.
 Tesco tries to get more personal with the customers and for this omni-channel is selected
that advance speedier fulfilment of order under which competitive pricing is increases in
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a) Lack of interactivity
b) Scam and fraud issues
c) Delay in delivery
27
28
29
30
31
32
33
34
35
36
30
35 35

successful manner. It help the business to maintain loyal customer base under which
personalised efforts is induced as by integrating price and rewards with perfection.
 The business also get advance additional channel for sale and for this make supportive
usage of different devices. As there is a lot of retailers that get worked with support of e-
commerce and mobile websites that allows brick and mortar to advance easy set up over
web. In addition to this Tesco worked towards turning of several sites as like Facebook,
Instagram as at there management create different post which also comply with merchant
agreement.
 Tesco get enhance and update its detailed information and bios as per necessary
requirement which is featured with support of revisit of customers as they get timely and
detailed base knowledge that is updated and accurate as well (Maslova, 2019). It
ultimately revisiting of potential customers through which sustained detailing is
processed that also advance interrelation of customers and business in suitable mode.
CONCLUSION
It has been concluded from the above report that retailing industry has been followed
various modern trends that assist to resolved different complex situation in moderate manner. For
this various retail trends is considered by retailing sector through which ability to get control
digital trends that help to maintain clear focus about modern trends within UK. In this different
analysis is processed with support of Pest and Swot by which both internal and external factor is
measured with effectiveness.
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REFERENCES
Books and Journals
Castaldo, S., Grosso, M. and Premazzi, K., 2020. Retail and channel marketing. Edward Elgar
Publishing.
Ceccato, V. and Armitage, R., 2018. Retail crime. Cham, Switzerland: Springer.
Ganebnykh, E. and et. al., 2018. Franchising technologies for sustainable economic development.
In MATEC Web of Conferences (Vol. 170, p. 01044). EDP Sciences.
Jelev, V., 2018. Future modern retail solutions and shopper experience. Annals of Spiru Haret
University. Economic Series. 18(1). pp.215-228.
Krasyuk, I. and et. al., 2019, March. Evolution of strategies of retail and technological systems
under broad digitalization conditions. In IOP Conference Series: Materials Science and
Engineering (Vol. 497, No. 1, p. 012124). IOP Publishing.
Maslova, A.E., 2019. SERVICES IN MODERN RETAIL TRADE. In XXXII
МЕЖДУНАРОДНЫЕ ПЛЕХАНОВСКИЕ ЧТЕНИЯ (pp. 100-103).
Santoro, G. and et. al., 2019. Big data for business management in the retail industry.
Management Decision.
SMOLYANINOVA, E.N. and et. al., 2018. Designing an Algorithm for the Marketing
Substantiation of the Retail Property Concept in Order to Improve the Efficiency of
Development Companies. Journal of Applied Economic Sciences. 13(5).
Tartaglione, A.M. and et. al., 2018. How the environmental complexity affects forecasting in
retail? Actual research trends. Journal of Marketing Trends (1961-7798). 5(2).
ONLINE
UK retail stats and facts, 2021. [Online] Available through:
<https://www.retaileconomics.co.uk/library-retail-stats-and-facts>.
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