Retail Trends and Analysis of Sainsbury’s

Research Company
COOP

Table of Contents
INTRODUCTION...........................................................................................................................1
Retail trends.....................................................................................................................................1
Retail industry analysis................................................................................................................2
Analysis of Sainsbury’s...............................................................................................................4
SWOT analysis of Sainsbury’s....................................................................................................5
Recommendations............................................................................................................................6
Action Plan......................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Selling products to customer in small quantities for their consumption is known as retail
process (Chhibber, 2019). This study is based on retail sector and Sainsbury’s which is the 2nd
largest chain of supermarkets in the UK. This present study is about to discuss trends of retail
sector of the UK as ho changes in economic, social and environmental changes are affecting
companies. Which changes are in the favour of companies and are in against. Further, it will also
show that how Sainsbury’s analyse internal business environmental factors with the help of
SWOT analysis tool. This analysis allows it to make an action plan on the basis of weaknesses
and other factors and making an effective position in the market.
Retail trends
In the context of retail sector and its trends it can be said that it is changing at an
unprecedented speed as it has several opportunities as well as challenges. As compare to 2010,
2019 is being estimated and considered slowest rate of spending growth and its all because of
Brexit uncertainty. One of the main loss and problems which people faced with Brexit
uncertainty is job lost of around 85000 with around 9,169 shops closure. On the flip side, due to
advanced technology online selling is stated raised and continued to grow (Retail trends, 2020).
Payment flexibility
One of the current trends is changes in payment system due to advanced technology and
sues of technology by all people to the great extent. In this sector, payment changes are one of
the main changes which occur and those companies who have flexibility skill they can take
advantages of this current trends. It will be difficult for small organizations to adapt changes.
Consumers prefer to pay as per their convenience as now there are several options and ways has
come in the market like: Phone Pay, Pay tm and others. So, it can be said that mobile payment is
one of the current trend in retail sector which needs to be adapted by companies like Sainsbury’s
Tesco and others in order to provide convenience and satisfy needs of customers (Top Retail
Trend, 2020).
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Figure 1: Retail trends
Sources: (Digital will continue to Disrupt Physical Retail in the UK, 2020)
From the above data, it can be said that 2019 year for retail companies was the worst year
because total sales in this year declined by .1% and 1.2 growth in the year of 2018. It shows that
retail sector companies like Tesco and others will have to face challenges in 2020 because of
technology and digitalization. Those companies who are best in physical store and retailers, they
will also have to make change in their strategies in order to make themselves competition as per
the changes in retail sector.
Retail industry analysis
Economic factors
In this context, it is stated that over the past ten years, economic output of retail sector
has fluctuated to the great extent. In the year of 2017 it was around £92.8 billion which is
considered as around 5.0 % of the UK’s total gross value added.
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