Influence of Online Shopping Trend on Retail Sector: A Study on TESCO

This report analyses the influence of enhancing online shopping trend over the performance and profitability of the retail sector. It includes a literature review, methodology, results, and recommendations. The study focuses on TESCO, the largest online retail business in the UK.

Inquiry Based
Learning

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the topic.............................................................................................................3
Research aim..........................................................................................................................3
Research objectives................................................................................................................3
Research questions.................................................................................................................3
Importance of research topic..................................................................................................3
Contribution............................................................................................................................4
Next steps of the report...........................................................................................................4
LITERATURE REVIEW................................................................................................................4
Current retail trends that enhance the performance of employees.........................................4
Significance of online shopping trends in the context of TESCO..........................................5
Strategies used by TESCO for dealing with online shopping trend within the retail sector. .5
METHODOLOGY..........................................................................................................................6
RESULTS/DISCUSSION...............................................................................................................7
Questionnaire..........................................................................................................................7
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13

INTRODUCTION
Overview of the topic
Retail depict the overall process of selling goods and services to the customers through
several channels of distribution to enhance the overall profitability. Online trends put major
impact over the retail business in terms of planning to expand them. Presently, individual
retailers are steering within the marketplace from the complexity, fragmentation and also
improve more confusion to enhance the future (Savila, Wathoni and Santoso, 2019). To carry
forward the research, Tesco is considered which is the online retail business of UK and provide
products at the affordable prices. It is the largest supermarket that deals in groceries, financial
services and so on. It is the third largest retailer supermarket company in UK that deals in broad
range of products and services.
Research aim
The main aim of research is “to analyse the influence of enhancing online shopping trend
over the performance and profitability of the retail sector”. A study on TESCO.
Research objectives
 To determine the current retail trends that enhance the performance of employees.
 To examine the significance of online shopping trends in the context of TESCO.
 To evaluate the strategies used by TESCO for dealing with online shopping trend within
the retail sector.
Research questions
 What are the current retail trends that enhance the performance of employees?
 What are the significance of online shopping trends in the context of TESCO?
 What are the strategies used by TESCO for dealing with online shopping trend within the
retail sector?

Importance of research topic
The research topic is important for the individual organisation by providing accurate
details regarding the retail trends. It is helpful for the organisation to opt all the suitable trends
and enhance the performance of business considering the productivity as well. Hence, the topic is
essential for the existing and new business venture who are interested in developing the business
within the retail sector.
Contribution
My overall contribution with this project is to use my effective research skills including
data collection, time management, decision making and so on to complete the each and every
activity of the project in successful way. I gave my proper timing and efforts for the successful
completion of the project.
Next steps of the report
There are different new steps which are useful for the successful completion of project.
These are explained as underneath:
 Literature review: This activity is helpful in gathering the information by secondary
sources like books, articles, journals and so on.
 Research methodology: This part of the project undertakes several types of
methodologies like primary and secondary method of data collection, qualitative and
quantitative research.
 Results: This part is useful in analysing the both primary and secondary information by
research techniques like frequency distribution analysis.
 Conclusion: This step undertakes details and data regarding the entire steps in
transparent and clear manner that is helpful for the achievement of research objective.
 Recommendations: It represent the main recommendations to enhance the overall
business performance by latest retail trends.
LITERATURE REVIEW
Current retail trends that enhance the performance of employees
As per the viewpoint of Johnson, (2021), there are several trends which put major impact
on the retail business like online and digital platform. Here, the shopping behaviour of customers
also continue towards evolving and the retailers must need to offer their products at the right

time, place and context with effective behaviour. There are some advanced technologies and
resources that leads to create benchmark and also enhance the better customer experience. In
terms of this context, the situation occurs where the popularity of edge in retail solution get pop
up shops and specifically for the kiosks that would increase within 2021 (Omar and et. al., 2021).
Further, some of the leading retail businesses like TESCO are having effective existence at the
global level. They tend to follow the current online trends in terms of promoting their products
and services at the online websites and also execute the latest retail trend to involve customers
towards the online shopping by offering proper discount and attracting them by providing
reasonable prices.
Significance of online shopping trends in the context of TESCO
According to the viewpoint of Mohsin, (2020), the new resources and technologies are
upgraded with suitable specifications and also influence to create effective benchmark on the
several industries such as retail, automotive, construction and so on. The latest trend that belongs
from retail sector is channelizing the business in more effective and productive way. Some of the
future trends leads to create effective benchmark to TESCO considering their systematic
upgradation of trends. The businesses also tend to enjoy flexibility where the low start-up cost is
set at the digital level for the physical offerings (Aparna, Krishna and Kumar, 2018). Here, the
brand extended their presence in the new and effective form by enhancing the analytical terms
which is easy to provide where the effective vision turns into wants and expectations of Omni-
channel customers that help retailer to identify the loyalty of customers. To believe the
development of the real connection with customers, TESCO need to follow current online trends
that would channelize more effectively in the customised manner and also put major impact over
the functioning of business.
Strategies used by TESCO for dealing with online shopping trend within the retail sector
According to Martins, (2021), at the time of pandemic, most of the businesses face high
range of losses and also wind up their business organisation. For this, the online businesses
create proper sustainability at the competitive retail market area in an effective manner. Most of
the retail businesses tends to mobilise by online method and also execute the digital marketing
trends. Here the shortage of talent and customer demand for the lighting where the quick and
effective services are always having better shelves to continue for the automation need. By the
suitable autonomous robots that can create grocery store and warehouse, analyse hazard of trip

and so on (Bilińska-Reformat and Dewalska-Opitek, 2018). In this context, the TESCO is
trending and also changing the further times including the presence of artificial intelligence and
robotics service that leads to enhance the productivity of staff and efficiency while offering
services to them. Effectively arranging the store and involvement of customers can be properly
managed considering the location regarding physically handling and exchanging of goods. It is
helpful to develop effective connections in modern times with customer retailers by designing
the personalised products in store encounters (Koster, Pasidis and van Ommeren, 2019). In terms
of TESCO, they need to maintain better customer service and effective relations by proving more
discounting offers that make things to impact towards the involvement of customers.
METHODOLOGY
Methodology is the effective process of collecting effective and suitable information
regarding the topic. There are several types of methodologies that are important for the
achievement of each goal and objective. Some of them are discussed as underneath:
Primary and secondary data collection:
On the grounds of primary data process which is comprising to evaluate the new
information and facts by finding own efforts. It is collected at the time and also considered as the
first hand information where it provides better objective at the suitable period of time. Primary
data is collected from the particular sources which are never used and also stated by someone
else before (Plana Casado, 2021). There are various ways to collect the primary data and from
which the well-known technique include market survey, interview questionnaire, observation and
physical experiments.
Secondary data:
Here, the data is scrutinised by the researcher from the other sources or data and also
have proper existence (Untaru and Han, 2021). Here, the effective use of secondary information
is with the help of researcher that can easily generate details on the particular topic in an
effective manner by online sources, books, newspaper and so on.
Quantitative method:
Here, the data trends are created effective in terms of facts, figures, statistics and number.
As per this methodology, it is considered as the easiest form of collection of data as the
researcher collect information from the number of people (Moorhouse, tom Dieck and Jung,
2018).

Qualitative method:
It is considered as the active form of collecting data in terms of gathering data for having
proper information. This form of methodology in which the researcher tends to understand the
effective concepts and experiences regarding the overall collection of information.
Resources of data collection:
There are several sources of data collection that include books, journals, publication
research, articles and so on (Öhlin, 2019). Here, all of these are useful regarding the literature
review with the objective of accomplishing the research objectives by research questions.
Data analysis:
To analyse the quantitative collection of data from the questionnaire, frequency distribution
is effectively applied by the researcher as it does not take effective time and also helps in the
accomplishment of valid results (Brydges, Retamal and Hanlon, 2020). For evaluating the
qualitative data, thematic analysis is used by the researcher. Here, suitable themes are made as
per the research questions.
RESULTS/DISCUSSION
Questionnaire
Q1. As per your opinion, what are the current retail trends the leads to impact the
performance of the company?
Frequency
a) Online shopping 8
b) Robotics service 7
c) Artificial intelligence 5
Q2. Explain the benefits which are gained by TESCO because of the online
shopping trend within the retail sector?
Frequency
a) Enhance the customer level 9
b) Enhance in profitability 7
c) Maintenance of performance 4
Q3. As per your research, what are the strategies used by TESCO to deal with
online shopping trend in the retail sector?
Frequency
a) Search engine optimization (SEO) 6
b) E-commerce websites 7

c) Development of application 7
Theme 1: Current retail trends the leads to impact the performance of the company
Q1. As per your opinion, what are the current retail trends the leads to impact the
performance of the company?
Frequency
a) Online shopping 8
b) Robotics service 7
c) Artificial intelligence 5
Interpretation: From the above graph, it has been analysed that the current retail trends put
major impact over the performance of company in terms of online shopping, artificial
intelligence and so on. For this, 8 out of 20 respondents go for online shopping, 7 give their
statement for robotics services and remaining are in the favour of artificial intelligence.
Theme 2: Benefits which are gained by company because of the online shopping trend
Q2. Explain the benefits which are gained by TESCO because of the online
shopping trend within the retail sector?
Frequency
a) Enhance the customer level 9
b) Enhance in profitability 7

c) Maintenance of performance 4
Interpretation: From the detailed discussion of graph, there are several benefits which can be
gained by the company due to the online shopping trend. For this, 9 out of 20 respondents go for
enhancement of customer level, 7 go for increase in profitability and remaining go for the
effective level of performance.
Theme 3: Strategies used by company to deal with online shopping trend
Q3. As per your research, what are the strategies used by TESCO to deal with
online shopping trend in the retail sector?
Frequency
a) Search engine optimization (SEO) 6
b) E-commerce websites 7
c) Development of application 7

Interpretation: From the detailed analysis of graph, it has been evaluated that there are several
strategies which are used by company to deal with current trends of online shopping. For this, 6
out of 20 respondents go for SEO, 7 go for e-commerce websites and remaining go for
development of application.
CONCLUSION
From the preceding discussion, it has been analysed that different retail business trends
which are described on the grounds of particular business objective is essential for the growth of
company. Here, the advanced technology, new resources and dynamic nature of trends leads to
create more competitive business environment. There is the identification of several general
activities by organising primary and quantitative research methods considering the effective use
and framing of questionnaire for evaluating the responses effectively.
RECOMMENDATIONS
From the above discussion, it has been recommended to company regarding the latest trends
like future retail services, online business customer involvement, robotics and so on that permit
more flexibility to the services. Here are some recommendations as follows:

 The marketing team of TESCO need to put emphasis on the digital platform and
implementation of plan considering artificial intelligence resources that leads to create
proper development of business and provide suitable opportunities.
 Proper alignment of organisational and individual goals is also important for the company
as it is useful to develop standardised objectives with effective level of vision and
mission.
 It is also recommended to TESCO to develop the comprehensive understanding of
business priorities and suitable strategy so that there is the overall development of cross
functional experience.

REFERENCES
Books and Journals
Aparna, K., Krishna, P.M. and Kumar, V.S., 2018. Analysis of Retail Mix Strategies: A Special
focus on Modern Retail Formats. International Journal of Engineering Technologies
and Management Research, 5(5), pp.71-76.
Bilińska-Reformat, K. and Dewalska-Opitek, A., 2018. Relationships of retail chains with
customers–global approach. Studia Ekonomiczne, 360, pp.50-63.
Brydges, T., Retamal, M. and Hanlon, M., 2020. Will COVID-19 support the transition to a more
sustainable fashion industry?. Sustainability: Science, Practice and Policy, 16(1),
pp.298-308.
Koster, H.R., Pasidis, I. and van Ommeren, J., 2019. Shopping externalities and retail
concentration: Evidence from Dutch shopping streets. Journal of Urban
Economics, 114, p.103194.
Moorhouse, N., tom Dieck, M.C. and Jung, T., 2018. Technological innovations transforming the
consumer retail experience: A review of literature. Augmented reality and virtual
reality, pp.133-143.
Öhlin, J., 2019. Retail Business Model Change in the Era of Digital Transformation: A case
study from the perspective of a business model canvas.
Omar, S and et. al., 2021. M-commerce: The nexus between mobile shopping service quality and
loyalty. Journal of Retailing and Consumer Services, 60, p.102468.
Plana Casado, M.J., 2021. The Developing History of Online Marketplace Regulation in the EU.
In E-FOOD: Closing the Online Enforcement Gap in the EU Platform Economy (pp.
33-60). Springer, Cham.
Savila, I.D., Wathoni, R.N. and Santoso, A.S., 2019. The role of multichannel integration, trust
and offline-to-online customer loyalty towards repurchase intention: an empirical study
in online-to-offline (O2O) e-commerce. Procedia Computer Science, 161, pp.859-866.
Untaru, E.N. and Han, H., 2021. Protective measures against COVID-19 and the business
strategies of the retail enterprises: Differences in gender, age, education, and income
among shoppers. Journal of Retailing and Consumer Services, 60, p.102446.
Online
Tara. J., 2021., Current trends in Retail business, 2021. [Online]. Available
through:<https://tinuiti.com/blog/ecommerce/retail-trends-emerging/>
Maryam Mohsin, 2020. Retail business importance of current trends. 2020. [Online]. Available
through:<https://www.oberlo.in/blog/ecommerce-trends>
Andrew Martins, 2021. Strategies of Tesco follows in Current trends. 2021. [Online]. Available
through:<https://www.businessnewsdaily.com/9836-future-of-retail.html>

APPENDIX
Q1. As per your opinion, what are the current retail trends the leads to impact the performance of
the company?
a) Online shopping
b) Robotics service
c) Artificial intelligence
Q2. Explain the benefits which are gained by TESCO because of the online shopping trend
within the retail sector?
a) Enhance the customer level
b) Enhance in profitability
c) Maintenance of performance
Q3. As per your research, what are the strategies used by TESCO to deal with online shopping
trend in the retail sector?
a) Search engine optimization (SEO)
b) E-commerce websites
c) Development of application