Current Trends in Retail Industry: Analysis of Sainsbury and Recommendations
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This report analyzes the current trends in the retail industry with a focus on Sainsbury. It covers the use of AI, online selling, and digital marketing strategies. Recommendations are provided for long-term sustainability and success in the competitive market.
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Current trends in retail industry...................................................................................................3 Analysis of the organisation.........................................................................................................4 Recommendations........................................................................................................................6 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................1 APPENDIX......................................................................................................................................3
INTRODUCTION The report is based on the inquiry based project that will highlight the current trends in the retail industry with the help of the business models andanalysis form the research study conducted through interview. Furthermore, it also covers the recommendations for the company to ensure future success in the retail industry. The chosen company is Sainsbury. MAIN BODY Current trends in retail industry The retail sector the business that is involved in selling the products directly to the end usersand includes shops , departmental stores, supermarkets , door to door salesand various internetretailers.TheretailsectorofUKisimportantfortheeconomyandprovides employment to over three million people(Jin,and Shin,2020). It has been analysed from the research is that it consist of over 300,000 separate business and is the also the source of employment and help in increasing the employment rate of the country. It also focuses on providing qualityproductsand servicesto itscustomerby understandingtheneedsand requirements. Due to Covid-19 crisis has resulted into various changes that has taken place in the retail industry. It has been analysed that most of the retailers has made modifications in their business models by looking at the current situation of the market. From the studies it has been observed that 87% retailers have shifted to selling their products online. In the beginning they faced various challengesby expanding itsbusiness onlineas it is necessary to stay ahead in the market and offer wide variety of the products to the customers(Kaur, Arora, and Bali, 2020). In order to cover and balance the losses, and to serve wide variety of audience, companies have set up the online storesand also offered home delivery which was the various steps that was taken by the company. From the research it has been analysed that the retailers uses direct to customer approach i.e.B2Cbusiness where the company sells its products to the customers. This kind of the model is used by most of the retail companies i.e. Sainsbury as carries higher marginsbut sometimes also results into high cost and distribution risk(Kunc, and Križan, 2018). Considering the increasing in the scope of technology , the company has move towards installing effective software systems in their management in order to receive the relevant information and data regarding the requirements of the customers and about the current trends in the market. Various
retailer have appliedArtificial Intelligencewhich has enabled the company and its systems to work together and has also helped in optimising the customer experience, forecasting the trends and also helps in management of the inventory(Har, and et.al.,2022). With the help of this technology it has helped the company to connect with customer and communicate in order to understand their preferences and requirements and operate accordingly. With the help of digital transformation has helped the company to get better and reliable data which acts as a driver and results into better business outcomes. It has been analysed that due to machine learning has helped the company gain knowledge about the customer , growth opportunitiesand leads to innovation(Arli, Bauer, and Palmatier, 2018). Current research shows that due to the pandemic and with the return to indoor shopping , thesafety measureshave been taken by the stores. The company is bound to follow the restrictions imposed by the government. In order to ensure safety , it has been observed that 62% has introduced contactless and online payment in their stores for better customer experience(Chen, and et.al.,2020). This has helped the industry to recover the losses. With the help of these it has helped the company to provided better experience to its customer. With the help of adopting the technologies and shifting to online world , the companies are focusing towards inventory management technology which will help to increase the efficiency and also improve the supply chain of the company in order to enhance its market position. Analysis of the organisation Sainsbury is the second largest U.K. Grocery chain and have 15% of its market share. The company has expanded its business in various countries and has over 600 supermarkets and 800 stores. The organisation was founded in 1869 and has diversified its business and expanded its product line by dealing in clothing, telecom equipmentand other non food items. In September 2016, company further entered into non food retailing business of Home Retail group and operating the Habitat and Argos chains. With the emergence of Covid-19, the company suffered and incurred its costs in paying the workers in order to prevent the spread of the infection. From the interview conducted, it has been analysed thatvarious changes have took place in the market which enable the company to make modification in its strategies according to the current trends in the market. It has been observed that during the pandemic the organisation also started its online selling of the groceries and provide home delivery services for the enhancing the customer
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experience. From the research it was observedthat the online demand for the groceries was increasing and have shown positive outcomes(Guo, and Wang, 2019). It was also seen that the sales of the company also increased by 20% and during this period the company focused on increasing its market presenceand also introduced new non food items. The company sells its products directly to the customer whenever they wants and according to needs and requirements. Thebusinessmodelofthecompanytodesignedinordertocreatemorevaluetothe shareholders, customer and colleagues. The company has also focused on introducing new marketing strategies in order to provide wide range of products and services to the customers. Furthermore,from the interview conducted it has been analysed in order to improve its efficiency of the business and provide better customer experience. The company has selected the Blue Yonder's end to end supply chain platformin order to make transformation in its supply chainontheartificialintelligenceplatform(Davies,Dolega,andArribas-Bel,2019). Furthermore , the company is using artificial intelligence and has introduced the concealment detector technology in its stores. The company has also collaborated with the ThirdEye to roll out the concealment detector which uses the machine learning in order to detect and record the incidents of the theftand also send the video to the security staff immediately. It has been observed that with the increase in the scope of technology , there has been increase in the cyber crime and breach of data which is one of the major concerns for the company. On the other hand, the company is also focusing on the data analyticsin order to develop effective database and applications in order to protect the personal information of the customer and data of the company. Due to the emergence of covid-19 has enabled the government to put various restrictions in order to ensure safety of the customers and staff members of the stores. Due to crisis the company suffered from the losses and incurred most of the costs in protecting the staff and employees form the coronavirus(Weber,and Schütte,2019). Furthermore , Due to lockdown the company has to face big amount of loss and make strategies to shift to online deliver of the grocery for better experience of its customer as per their requirements. It was analysed from the study that workers who were working during the pandemic , most of the expenses of the company was spent providing safety equipments to the employees and ensuring safety in order to reduce the spread of the infection. By following the safety measures and to improve the customer experience, company started doing contactless payment and online payments on the food and
non food items(Giroux, and et.al.,2022).From the above analysis it has been analysed that the company has focused on adopting new and advanced software which has helped the company to collect reliable data in order to understand the customerspreferences and requirementsand deliver the products. Recommendations It has been observed that with the changes in the environmental it is necessary of the company to make modifications accordingly for long term sustainability in the competitive market. Sustainability is very important factor for the retailers for the success of the business. If the company wants to expand or diversify its business it is recommended to plan the strategies and introduce innovations in order to provide wide range of products to its customers(Cao, 2021). In order to succeed in the business, it is required for the company to have flexibility and should set clear objectives before implementing any strategy. It is recommended to Sainsbury to be well organised and In order to complete the task effectively and in the given timeline(Pantano, and Vannucci, 2019). It is also suggested to the company to maintain financial records of all the transactionsand monitor the progress of the company and its ability to face the challenges. The company can use various new and advanced software such as Big Data and use of Artificial intelligence that will help the company to find appropriate data about the current trends prevailing in the market and also the needs and requirements of the customer and then evaluate the progress of the company and make strategies accordingly in order to fulfil the requirements of the customer and to enhance its position in the market. In addition to this innovation is very important aspect which contributes in the success of the company. In order to succeed in the market and to stand against the competitors it is required to critically evaluate the strategies and products offered by the competitorsand add new products or service in the market which matches with the expectations of the customers(Vaishya, and et.al.,2020). On the other hand with the increase in the scope of the technology it is required for the company to adopt new and effective system software which helps to analyse the various factors affecting the operations of the company. It is suggested for the company to use more updated software in its system for protecting data of the customers and also data security. On the other hand, the manager of the company is required to have the knowledge about the risk that are involved in conducting the business and it is necessary to manage the and find ways to
eliminate such risk which can negatively impact its business(Cao, 2021). It is recommended that the organisation should create risk assessment programs which will help the company to identify the level of risk that is involved and help in overcoming those barriers. Furthermore, it is suggested to the company to be consistent as it is considered necessary to carry out the business and successfully. Business environment is dynamic in nature and changes in it affects the business. The company is required to implement such changes and educate the employees about the benefit of such changes by providing efficient training to the employees. In addition to this the company is required to focus providing effective services to the customer as they are considered as major aspect which contributes in the success of the organisation .
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CONCLUSION From the above report it can be concluded that the scope of UK retail industry is increasing and it also acts a source of providing employment to people. In order to succeed in the market and give tuff competition it is necessary for the company to focus on providing quality services to the customers. The research summarise the various current trends prevailing in the retail industry of UK such as shifting to online selling of the products of the company , use of artificial intelligence as it helps in collecting useful data for evaluating the progress of the company and also to improve its efficiency and reduce the cost. On the other hand, the study also includes the analysis by conducting the interview and analysing the position of Sainsbury and its features considering the current trends in the retail industry and lastly recommendation for the company in order to succeed in the market and gain competitive advantage in the retail industry such as adopting digital marketing strategies and adopt the updated technologies in order to collect the data for further analysis.
REFERENCES Books and journals Arli, D., Bauer, C. and Palmatier, R.W., 2018. Relational selling: Past, present and future. Industrial Marketing Management. 69. pp.169-184. Cao,L.,2021.Artificialintelligenceinretail:applicationsandvaluecreationlogics. International Journal of Retail & Distribution Management. Chen, and et.al., 2020. Promotional pricing and online business model choice in the presence of retail competition. Omega. 94. p.102085. Davies, A., Dolega, L. and Arribas-Bel, D., 2019. Buy online collect in-store: exploring grocery click&collect using a national case study. International Journal of Retail & Distribution Management. Giroux,andet.al.,2022.Artificialintelligenceanddeclinedguilt:Retailingmorality comparison between human and AI. Journal of Business Ethics, pp.1-15. Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between 2015and2018incomparisonwithTescoandMorrisons.AmericanJournalof Industrial and Business Management. 9(2). pp.325-341. Har, and et.al.,2022. Revolution of Retail Industry: From Perspective of Retail 1.0 to 4.0. Procedia Computer Science. 200. pp.1615-1625. Jin, B.E. and Shin, D.C., 2020. Changing the game to compete: Innovations in the fashion retail industry from the disruptive business model.Business Horizons.63(3). pp.301-311. Kaur, J., Arora, V. and Bali, S., 2020. Influence of technological advances and change in marketing strategies using analytics in retail industry. International journal of system assurance engineering and management. 11(5). pp.953-961. Kunc, J. and Križan, F., 2018. Changing European retail landscapes: New trends and challenges. Moravian Geographical Reports. 26(3). pp.150-159. Pantano, E. and Vannucci, V., 2019. Who is innovating? An exploratory research of digital technologies diffusion in retail industry. Journal of Retailing and Consumer Services. 49. pp.297-304. 1
Vaishya,andet.al.,2020.ArtificialIntelligence(AI)applicationsforCOVID-19 pandemic.Diabetes&MetabolicSyndrome:ClinicalResearch&Reviews.14(4). pp.337-339. Weber, F.D. and Schütte, R., 2019. State-of-the-art and adoption of artificial intelligence in retailing.Digital Policy, Regulation and Governance. 2
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APPENDIX Q 1What changes have you observed in the Sainsbury you observed after pandemic? Participant 1I have observed thatthe company has successfully complied with the current trends and successfully followed the safety measures ensuring health and safety of the customers in their offline stores. Q 2Do you think adopting latest technology such as Artificial Intelligence, Sainsbury has regained its position in the market? Participant 2Adopting Artificial Intelligence has helped the company to effectively manage its supply chain that has helped the customer to respond to the changing needs and deliver the same to the customers. 3