Impact of Pandemic on Retail Industry of UK

This report discusses the impact of pandemic on the retail industry of UK. It includes literature review, factors affecting retail industry, strategies to overcome covid 19 crisis, methodology, ethics and limitations.

Executive summary
This report has discussed about the impact of pandemic or covid 19 on the retail sector. Report
has framed objectives and on that basis literature review has conducted. Research has done using
qualitative technique and by using ethical consideration or practices research has conducted.

Table of Contents
INTRODUCTION ..........................................................................................................................5
Literature review..............................................................................................................................5
Pandemic impact on retail sector.................................................................................................6
Factors which are affecting retail industry during pandemic.......................................................6
Strategies to retail sector to overcome covid 19 crisis.................................................................7
Methodology....................................................................................................................................8
Research design............................................................................................................................8
Methods........................................................................................................................................9
Data analysis..............................................................................................................................10
Ethics..............................................................................................................................................10
Limitations.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
This proposal will going to be focus on the impact of covid 19 or pandemic on the retail
industry of UK. As pandemic has badly affected every sector in worldwide and it can be said that
retail sector has adversely affected due to the pandemic. As retail industry is not able to make its
expected sales that is why its revenue has drastically declining. Due to the pandemic retail
industry has to start employee lay off. Under employee lay off many employees has lost their
jobs and company has also loses talented workforce (Naeem, 2020). During pandemic people
does not have enough money to spend so that is why they are only spending on necessary items.
Clothes, accessories, fragrances which are also comes under retail sector is rarely purchased by
customers in the covid 19 crisis. There are many companies under retail industries are planning
to bring innovation but due to pandemic it has got delayed. This report will discuss about the
effect of pandemic on retail industry in detail. Report will shed light on literature review in
which topic will going to be discuss in deep. Along with that research methods will also going to
be discuss. Further research will also discuss ethics and limitation of the study.
Aim and objectives:
Aim
The aim behind the study is to find out the impact of pandemic on retail industry of UK.
Objectives:
 To identify pandemic impact on retail sector.
 To analyse factors which are affecting retail industry during pandemic.
 To recommend strategies to retail sector to overcome covid 19 crisis.
Research questions:
 what are the pandemic impact on retail sector?
 What are the factors which are affecting retail industry during pandemic?
 What are the strategies to retail sector to overcome covid 19 crisis?
Literature review
Literature reviews refers to the evaluation of the already available literature for the given
topic. It is the detail theory presenting for particular subject so that subject can be properly
understood.

Pandemic impact on retail sector
According to Sayyida and et.al., (2021) pandemic has badly impacted retail sector. This is
the external environment change and which has influenced retail industry in terms of its sales,
profits, revenues etc. retail industry has not received any growth but it can be said that its growth
has gradually declined. After the UK governance has announced lockdown due to covid 19,
many retail businesses gets closed because they were not having enough funds to survive in
covid 19 crisis. As retail businesses has to pay rent, electricity bills, employee salary and other
expenses. So small retail businesses does not have the capacity to survive in such difficult
situation so that is why they has to shut down. Just because many small retail businesses closed
their business it has adversely affected on employment of people. In the pandemic times
unemployment rates has gradually increases because people has lost their jobs as they are forced
by their employer to leave jobs. Due to covid 19 retail industry has shaken and because retail
industry has shaken so it has also affected the economic growth of the country. As retail industry
is contributing high in the economic growth. Pandemic has stopped the growth of retail industry
and that is why economic development has also stopped at certain extent.
Kabir and et.al., (2020) stated that The retail sector has severely affected from pandemic because
government has forced people to stay at home and that has affected face to face purchasing at
stores. Although sale of medicines are increased. Consumers who does not believe in online
shopping and purchase everything by visiting retail stores then for those customer lockdown has
become barrier to go out and buy product from retail stores. It can be said that the pandemic has
become cursed for the complete retail industry. As in pandemic times there has the fullstop on
the growth of retail industry. Coronavirus has affected business performance and increase
frustration in retailers so that is why they has to close there retail business because they does not
have enough money in order to survive in covid 19 crisis. Although stores which sells food and
daily necessity items are remained open otherwise other stores are remain closed only.
Factors which are affecting retail industry during pandemic
As per the views of Hacıoğlu-Hoke, Känzig and Surico, (2021) quarantine is the biggest
factor which has affected retail businesses. Government has announced lockdown and because of
that people have no option but to stay at home. When people went in retail store than they
purchase more because everything are displayed infront of their eyes and that helps companies in
increasing their sales. But pandemic has left no option with people except to stay at home. There

are many consumers which are not coming out from their home after the government has stared
unlock procedure because they have the fear that if they will go outside then they can get
infection or virus. Supply chain or distribution network of retail industry has badly affected
because due to lockdown government has put restriction on the movement. So that is why
companies under retail sector has not able to supply their products at time and that is why they
losses their potential customers. Hartley, (2020) said that Due to pandemic customers purchasing
power has also changed.
No customers are preferring to spend on basic requirements and not willing to purchase anything
extra. Electronics are also comes under retail sector. So it has observed that electronic businesses
has shattered during pandemic because electronics is not comes under basic needs so that is why
customers are not willing to purchase it. Pandemic has also affected business operations. As
government is imposing lockdown and after some days again they are removing lockdown
restrictions. And if cases are increasing then again lockdown has announced by them. This
situation is worst for retail sectors because they cannot decide that how much to produce because
no one can predict when lockdown will going to be happen again.
Strategies to retail sector to overcome covid 19 crisis
Dannenberg and et.al., (2020) evaluated that if retail industry wanted to overcome from
covid crisis than they have to focus on online sales. In order to meet customer needs business
must have digital acquisition. Digital transition taken by business can help them to bring fast
growth and also can increase the customer base. Online retail will give good opportunities to the
business and also company will witness high growth because customers are not able to move out
for shopping because of lockdown restrictions. Food stores and restaurant who are providing
home delivery services can increase their sales and revenue by adopting online sale option.
Organisation should use latest technology and analytical capabilities in order to evaluate
management and also can do fraud prevention. Understanding the existing customer base is also
very important. As the business environment is changing rapidly so it is important that
companies should understand their customers in terms of their preferences and expectation. In
uncertain situation, it is important to do customer management and concentrate on customer
value and retention management. In today's world customer have great expectations with
companies. So that is why company should focus on customer relationships in order to gain new
customers and also retain existing one.

There are various customer management techniques which can be used by companies so that to
ascertain changes in their customers life and also to know their preferences so that they can
generate good returns and also can motivate customers to spend. So company should have
customer management capabilities so that they can identify customer groups and also provide
solutions to them. Thukral, (2021) discussed that it is very important for retailers to manage their
short term and long term finances. It is very essential for company to think about costs cutting.
They should have cut irrelevant costs or any extra costs which is incurred by company. Retailers
should have make decisions about their investment properly. They should invest in such things
which helps company in getting good returns so that they can survive in uncertain conditions like
covid 19 crisis. Company also requires strong leadership in order to understand the demand of
the business and can make effective decisions for the business.
Methodology
Research design
Research strategy
Research strategy is the way of having a step by step planning about the actions which
will provide some direction to the research process. The main reason behind research strategy is
to explore different areas of the research. There are two types of research, quantitative and
qualitative research. Qualitative research is the process of collecting, analysing and interpreting
the information related to the research. This method is used to understand different perceptions
while having a meaning to the social reality (Snyder, 2019). This information is the non
numerical data and is collected using the in depth interview and analysing different theories.
Quantitative research is about the process which includes collection of data and analysing the
data. This data is numerical which is used to measure the variables. It is statistical and is very
systematically analysed. Quantitative research helps in providing support the which is required to
generate conclusions about the research and predict the outcomes. In this research Qualitative
research will be used because this approach is used to gain the insights about the chosen topic. It
helps in describing the data rather than measuring it. It involves having the first hand observation
and is conducted in more natural setting.
Research approach

It is the process which helps in building the assumptions. Research approach can be
categorised into two categories such as inductive research and deductive research. In the
deductive research approach, when the premises are correct then the obtained conclusion will
also be correct. This approach generalises from the general things to the specific. In this
approach the data is collected using the evaluation process and creating a hypothesis which is
related to the existing theory (Mohajan, 2018). The last step in the deductive approach is done by
the verifying the theory created based on the hypotheses. In the inductive approach, the known
premises are used for the generation of conclusion which are not tested. The generalising is done
with starting from the specific to general. Data is collected while exploring and identifying the
themes. Based on this, patterns are created to make a conceptual framework. Theory is generated
and build. In this research, inductive approach will be followed as it allows flexibility and gives a
close view to support the generation of new theory. It helps in retaining the facts and enhancing
them. This approach is best for qualitative research.
Research philosophy
It is the belief which is about the process by which the data is gathered, analysed and
used. It deals with the source, nature and development of the knowledge. Interpretivism is the
philosophy which involves having interpretation of different elements of the study. It helps in
integrating the human interest in the research conducted (Ørngreen and Levinsen, 2017). It uses
the idea of construction in order to understand the human point of view and actively create some
conclusions. Positivism is about having a fact based research and investigation. It stands on the
good sense of experience and empirical experience forming the foundation for the research.
Positivism helps in defining the knowledge with more observable facts and no importance to the
non observable entities like feelings and values. This research will be conducted with
interpretivism for the qualitative research as it provides more high level of validity and better
study of the topic which is more trust worthy and honest.
Methods
Data collection is the process of collecting the data along with measuring and analysing it
with an accurate insight for the research. It helps in validating the techniques and evaluating the
hypothesis based on the method of data collection. Primary data is the process of collecting real
time data and is the process which requires involvement. It is done by the help of conducting

surveys, preparing questionnaire and personal interview. this method is specific to the needs of
the researchers. Secondary data is the process of using the data which is already have been
collected before. It is based on the past data. This process is quick and easy and is available in
refined form. In this research will follow the primary and secondary methods for the collection of
data. This will provide high level of accuracy and reliability. Primary data collection involves
having the full range in depth information and secondary data helps in attaining the information
which is already is been done and is valid.
Data analysis
This is the process of transforming, modelling data into creating useful informations for
the business decision making. The aim of data analysis is to extract the important information
from the given data and take the decisions based on data analysis. Thematic analysis is the
process which involves reading the data. It identifies the data and patterns which come across the
data. Another method is the method of SPSS which is used in different researchers having the
complex statistical data analysis. SPSS is used to analyse the survey data which will get most out
of the research and survey projects. In his research thematic analysis will be performed which is
best for doing the qualitative research.
Ethics
This research will be conducted by following ethical practices. Reference list will be
attached at the end of the report so that to show that information are collected from relevant
sources. Consent form will also get signed by the participants so that to give proof that
participants are participating because they want to participate and nobody is forcing them to
participate. Through this there willing participation can be shown. Research will also considered
with full honesty and no bias will be done. No offensive language will be used while forming
questionnaire. Privacy of participants is the most important thing. So researcher will make sure
that while conducting research private information of participants will remain safe and will not
be leaked.

Limitations
This research has some limitation which will affect the results from small extent. The
time provided for the research is creating a limitation. The budget set for the research is less and
the primary research conducted will conducted which is an expensive process. Due to the
pandemic situation, it is not possible to fill the questionnaire on the face to face basis and will be
done on the online platforms (Dźwigoł and Dźwigoł-Barosz, 2018). Money is always a problem
and the process of collecting the data requires a lot of financial resources. These limitations will
have some reflection on the research. It is important to identify these limitations. It provides an
opportunity to make changes for the further research.

REFERENCES
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Dźwigoł, H. and Dźwigoł-Barosz, M., 2018. Scientific research methodology in management
sciences. Фінансово-кредитна діяльність: проблеми теорії та практики, 2(25),
pp.424-437.
Hacıoğlu-Hoke, S., Känzig, D.R. and Surico, P., 2021. The distributional impact of the
pandemic. European Economic Review. 134. p.103680.
Hartley, K., 2020. Economics and the Covid Pandemic in the UK. Peace Economics, Peace
Science and Public Policy. 26(3).
Kabir, M. and et.al., 2020. COVID-19 pandemic and economic cost; impact on forcibly
displaced people. Travel medicine and infectious disease. 35. p.101661.
Mohajan, H.K., 2018. Qualitative research methodology in social sciences and related
subjects. Journal of Economic Development, Environment and People, 7(1), pp.23-48.
Naeem, M., 2020. Understanding the customer psychology of impulse buying during COVID-19
pandemic: implications for retailers. International Journal of Retail & Distribution
Management.
Ørngreen, R. and Levinsen, K., 2017. Workshops as a Research Methodology. Electronic Journal
of E-learning, 15(1), pp.70-81.
Sayyida, S. and et.al., 2021. The impact of the covid-19 pandemic on retail consumer
behavior. Aptisi Transactions on Management (ATM). 5(1). pp.79-88.
Snyder, H., 2019. Literature review as a research methodology: An overview and
guidelines. Journal of business research, 104, pp.333-339.
Thukral, E., 2021. COVID‐19: Small and medium enterprises challenges and responses with
creativity, innovation, and entrepreneurship. Strategic Change. 30(2). pp.153-158.