Impact of Covid 19 on Customer Buying Behaviour and Sales

Research Management
Project and Career
development
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Table of Contents
BACKGROUND OF BUSINESS ISSUE.......................................................................................3
LITERATURE REVIEW................................................................................................................5
METHODOLOGY..........................................................................................................................7
FINDINGS.......................................................................................................................................8
RECEMMENDATIONS...............................................................................................................17
REFERENCES..............................................................................................................................19
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Topic – Impact of covid 19 on customer buying behaviour and sales.
BACKGROUND OF BUSINESS ISSUE
Covid 19 has highly impacted on overall global economy. It has become a great concern
for government as well as business. There has been high decline in growth and sales of business.
It is because of lock down imposed due to which shops are closed. The pandemic has impacted
adversely on all sector such as retail, tourism, automobile, etc. There is no industry left on which
the pandemic has not affected (Gillingham and et.al., 2020). Moreover, there is also change in
needs of people as well. Now, they have become more health conscious and are consuming
healthy products only. In addition, spending on other things has decrease and they are focusing
only to fulfil basic needs. There is shift in demand and supply as well. However, it is found that
there is change in consumer buying behaviour. It is because of shift in their demands and needs.
So, the overall process of buying behaviour is transformed. The decisions are taken on basis of
availability of product in market rather than on various other options.
So, in UK in retail sector there is high decline in sales and profit of companies. It has
been found that in UK there is 5.1% decline in sales since March. The fashion and clothing
sector showed 34.8% decline since last year. In addition, it has been found that in 2020 there is
rapid rise in online shopping in UK. It has been found that since April sale rise from 19% to
30.2%. Along with that, it has been found that in 2020 87% of households in UK did online
shopping. Moreover, clothing and sports products were shopped online by customers. Besides
that, price and choice are 2 main factors considered by people in doing online shopping. On
contrary it is found that in April stores sales decreased to 87.8% and in July it was -48.1% (Hall,
Prayag, and Dyason, 2020). Similarly, in high street in April there was decrease in 81.8% and in
July it was 47.5%. The government is third tier has imposed lock down again in UK due to rise
in number of covid cases. So, it has add on another hurdle for retail companies to maintain
business growth and increase sales.
Primark is a fashion retailer in UK and is operating in US and Europe. It provides
products such as clothing, house ware, cosmetics, etc. The headquarter is in Dublin Ireland. Due
to covid 19 there is lock down imposed in many countries. So, this has highly impacted on
growth of company and its operations (Gao and et.al., 2020). It is because they were not able to
deliver products to people as stores were closed. Along with that, there is change in customer
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buying behaviour as well. They now prefer to buy online and also save money as they do not
want to spend it on unnecessary items. Their prioritises have changed. There is more spending
done in fulfilling basic needs. Covid 19 has affected on many business operations such as HR,
sales, production, etc.
Research aim and objectives
Aim- To examine the impact of covid 19 on customer buying behaviour and sales. A project on
Primark.
Objectives
 To evaluate impact of covid 19 on customer buying behaviour
 To analyse affect on sales due to covid 19 on Primark.
 To recommend ways to reduce impact of covid 19 on Primark.
Research question
 What is impact of covid 19 on customer buying behaviour?
 What is affect on sales due to covid 19 on Primark?
 What are ways to reduce impact of covid 19 on Primark?
Rationale of project
The main purpose of doing this research is to find out how covid 19 has impacted on
customer buying behaviour. Also, it will enable in determining impact on sales of companies
operating in retail sector as well. Besides that, it will be examined that what are factors due to
which customer buying behaviour is changed, how they are making decision, etc.
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