Problems Affecting Food Retail Sector

Report
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Two major problems that affect food retail sector.................................................................2
PESTEL model.......................................................................................................................3
Issues that impact sustainability of food retailers...................................................................5
Reflection...............................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Business environment can be defined as set of internal and external components such as
socio cultural, economic and other factors. It can be split in both micro and macro environment
based on perspective. The current assignment will be based on food retailers as one of the
profitable subsectors, in the UK. It will explain two different problems that have impact upon
chosen subsector and will describe application of PESTLE model. Furthermore, this study will
justify affects of two issues on sustainability of subsectors. It will define right examples of
companies and reflection based on two challenges as well as lessons learned from experiences.
MAIN BODY
Two major problems that affect food retail sector
Food retail sector is one of the biggest industries in the United Kingdom, with an annual
turnover of more than £104 billion. Online food sales are presenting excellent progress, with
industry being valued £12.3 billion. There are many food retailers and wholesalers are operated
their venture under this sector in effective manner. While managing their business functions and
operations in sector, there are several factors that put negative impact on it. These elements
create many issues, which is not suitable for long term success of chosen subsector.
Issue 1- Changes in buyer needs-
Food retailers & wholesalers, face issue due to changes in needs or preferences of their
customers because it directly impact on sales and productivity of supermarkets in negative
manner (Anand Dash, 2019). It can be said that, consumers are the main stakeholders of a
company, as they help to generate revenue and increase profitability of subsector even better.
Their needs are in recent time changes because to market trends that affect selected sector
negatively. These changing process, may lead to decrease sales and profit margin of business. It
can influence buying behaviour of potential consumers to industry and drive them towards take
further alternation, which in the future consumes a lot of time and efforts. Many people moved
towards considering healthy habits and purchase grocery items accordingly, which is quite
beneficial for them but not for supermarkets operated under Food retailer & wholesalers.
The overall thing is that this activity creates an issue in front of subsector from which
they want to overcome by using range of approaches. Most of people in the whole world are
changing their buying preferences and food related needs, because of health issues (Ota, Sangita
Ray and Kumar, 2020). Due to these things, food retailers face issues to manage their inventory
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