Challenges and Impacts on Sainsbury's: A Report on Food Retail Market

Business — Report

Table of Contents
Business — Report......................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1 ..............................................................................................................................................3
Evaluation of key aspects issues......................................................................................................3
Task 2...............................................................................................................................................4
Pestle Model.....................................................................................................................................4
Task 3...............................................................................................................................................5
Explanation of key issues which can impact the sustainability of businesses.................................5
Task 4...............................................................................................................................................7
Reflection.........................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Food retailers and supermarkets are the place where people can purchase the
goods of their survival which includes grocery, vegetables, frozen products and other daily
needs. Supermarkets are the individual-services shop which offers a numerous variety of
substance, liquid and household items(Cai, and et.al, 2018). The report will discuss the impacts
and challenges by choosing a food retailer company named Sainsbury which is located at
London, United Kingdom. It is the second largest supermarket in the UK. This study will
illustrate the methods that how a retailer company can developed and grow in this field.
MAIN BODY
Task 1
Evaluation of key aspects issues.
As customers become more demanding, it creates an issue and challenges on the retailers
to fulfil their needs. Here, performing the two different problems that affect Sainsbury's
development.
Low price and high discount rates : In supermarkets, the largest risk faced by an organization
is the entrance of discount models and strategies which has been performed for approaching the
consumers. According to previous studies, It has been founded that Aldi grew 18 percent through
2013, those profits for discounts chains converted directly to huge loses, same as with Tesco,
market share fell 30.25 percent to 30.0 percent till the end. This same strategy occurred in
Sainsbury's from which they have to face a great loses for traditional supermarket chains. The
largest retail companies Tesco and Sainsbury's affected from giving the heavy discounts and
lose their productivity at the end of the year.
Let's consider an example which will describe how an organization has been affected
from the above mentioned issue. Sainsbury's is selling the grocery items at different costs, for
attracting and increasing the sale they mentioned the offer of 40 percent off on the items which
are more than cost of $5(Gu and Wang, 2020). On other hand, any organization lets keep a name
Tesco, which is providing the same strategy but keeping the discount rates $6 more than
Sainsbury's. This difference of applying a strategy better than other organization creates a huddle
makes puts down the economic chart.
Competition on the high end : Every day is challenging in any department whether its fashion
or food company. In a business, it is a basic point to understand the methods competitive