Trends and Forecasting in the Retail Sector: A Strategic Analysis

This report provides a detailed analysis of trends and forecasting within the retail sector, focusing on the dynamic nature of the business environment. It begins with an introduction highlighting the importance of analyzing market changes to achieve success and gain a competitive edge. The main body of the report examines global drivers impacting the retail sector, utilizing PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. It then delves into consumer analysis, emphasizing segmentation and understanding target customer demographics and psychographics. Furthermore, the report explores macro trends, particularly the rise of online shopping and the adoption of innovations such as artificial intelligence and e-commerce. The methodology includes both scanning and analyzing the retail market. The report also incorporates research methodologies, including primary and secondary research, and presents statistical data on the sector's growth and employment. Finally, the report concludes with strategic implications, recommending the use of technology, organic products, online selling, digital marketing, and robotics to enhance customer satisfaction and gain a competitive advantage. The report emphasizes the need for businesses to adapt to changing consumer needs and leverage technology to achieve long-term success.

Trends & Forecasting

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Week 1 - Global drivers.........................................................................................................3
Week 2 - Consumer analysis..................................................................................................5
Week 3....................................................................................................................................6
Week 4 - Innovation awareness..............................................................................................7
Week 5....................................................................................................................................8
Week 6 - Strategic Implications...........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
The nature of business environment is dynamic. It becomes importance to analyse the
changes that takes place in the market. In order to attain success there is need of identifying all
the changes that take place (Barchi, Pierro and Moser, 2019). By analysing the trend, the
business organisation is able to attain better position. This portfolio is based on retail sector.
There is analysis regarding the external factors that might impact the sector. These changes have
influence on the future as well and will help to manage the work effectively. Afterwards, there is
discussion regarding the consumer analysis that helps to select the best set of customers. The
macro trends that take place in the retail sector are important part of portfolio. The methodology
plan is important part of this report as the use of right method is mentioned herein. In the end of
this portfolio there are strategic recommendations mentioned that will help to take necessary
decisions in future.
MAIN BODY
Theory to identify trend
 Scan: It is necessary to scan the condition of retail market. This helps to know about the
GDP and other parameters of the retail sector. There are regular changes that take place
and they are scanned in this stage.
 Analyse: In the stage of analysis the global drivers are being analysed and their impact
on working of firms in retail sector are mentioned. The current trend is related to online
shopping.
 Apply: It is important for all the businesses in retail sector to apply for the online
shopping. There is key role of analysing the trend so that the same is analysed.
Week 1 - Global drivers
There are certain global drivers that have impact of retail sector. The retail sector is
integral part of economy and comprises 5.2% of gross domestic product in UK. There is key role
of identifying the factors in retain industry and their impact in future. The use of PESTLE
Analysis will help to understand the drivers effectively. They are as follows:

Political sector: There are different policies around all the nations. The tax rates, trade
policies, tariffs, policies, political condition etc. There is political stability in United Kingdom
and this helps the retail sector to operate effectively. The policies are friendly for the retail
sector and this helps the players of sector to operate effectively. The government supports the
sector and this will help them to take all the innovative actions effectively.
Economic Factors: The economic condition of UK is enhancing post pandemic. It is seen
that these factors include exchange rate, interest rate, labour cost, employment rate, demand and
supply, inflation rate etc. (Vanaja and Anukeerthana, 2021). The pandemic situation has added
problems for the retail sector. People were scared to go out of their house and this reduced the
revenue of retail sector. In present time, the demand is high and this helps the retail sector to
achieve success.

Social Factors: There are changing trends in market and it is necessary to check the
requirements of customers. There is key role of consumer trends, lifestyle, buying habits on the
retail sector. It is seen that customers in retail sector prefer to buy all the products at same place
so that they are able to get everything. They also want changes in products and services on
regular basis so that their needs are satisfied.
Technological factors: Technology is updating at regular pace and it is necessary for retail
sector to upgrade the technology. The businesses under retail sector must spend amount on
research and development so that they are able to use best technology (Wang, 2021). In retail
sector the use of digital marketing is done and online delivery is also in trend to satisfy the needs
and wants of customers. In current time, the use of online delivery of products and e-commerce
is necessary so that all customers are satisfied.
Legal factors: laws and legislations must be followed by each and every sector. There are
certain employment laws, health and safety laws that are followed by retail sector UK. This
helps to keep the customers satisfied and build a brand image of the business.
Environmental factors: The business is in retail sector get most of the resources from
environment and it is there responsibility to take actions in favour of environment (Ziaie,
ShamiZanjani and Manian, 2021). The overall supply chain management must be done in such a
manner that there is minimum waste. It is important to avoid plastic and reduce the wastage of
resources. The use of corporate social responsibility helps to minimised waste and control the
carbon emissions. This helps the retail sector to become environment friendly.
Week 2 - Consumer analysis
Consumers are important for business and are given priority. In retail sector as well there is
key role of customers. It is seen that there is huge population in UK. The retail sector has to
select the target customers in order to serve their needs and wants effectively (BE, 2019). There
is various basis of segmentation that are available in the market.

The retail sector in UK covers the following customers:
Demographic
 Female of 20 To 45 years
 Both small and joint family are target customers
 The income group of middle and high group
Psycographic
 The people living good lifestyle that have a social class
Behavioural
 The loyal customers that are given discounts if occasions.
It is clearly understood that the retail sector has their own target customers. They check their
decision making process so that they can be attracted (Ballantyne, Singleton and Dolega, 2021).
There is huge importance of understanding the problems of customers and providing them best
solution for their needs and wants. This information helps the businesses within retail sector to
make changes in their products are services as per the requirement of customers. The satisfaction
of customers in must in retail sector and they take feedback directly from the customers (Pine,
2021). The target customers of the company are selected so that they are able to focus on them
and enhance their experience.
Week 3
There are regular changes in the retail sector. There is need of monitoring them so that best
is provided to the customers. The macro trend is related to online shopping option available for

the customers (Malik, 2022). There is need of providing online shopping option to the customers
in retail sector so that their needs are satisfied.

Week 4 - Innovation awareness
In today's era, retail sector has grown up till now which has lead too many innovations and
Technology advancement (Guimarães, 2018). That shows this industry has many new changes
taken place during the time. E-Commerce is one of the most beneficial innovation till now which
has to cries in the worldwide market. Due to digitalisation the Retail Industry has grown up since
now in which artificial intelligence robotics and cloud services are used to deliver products of the
company. Also, the demand for continuous fashion and Organic products are also rising after the
period of Covid-19.
These innovations contribute in the success of retail sector through providing online
platforms to sell and engage customers from world wide area. The use of innovation and internet
has led to trend of online shopping. It is necessary to understand that after the pandemic situation
the customers want the good delivered at their door step. Artificial intelligence helps in

eliminating human errors and make the customer services easy and possible in quick time.
Robotics and Cloud Computing are helpful to give responses to queries of people and to keep the
data stored for long time (Norazizi and Syafrina, 2021). All these innovations in retail sector
impact on the growth of industry and long term existence. The Retail Industry help in assuring
customer convenience to promote better facilities and loyalty towards the organisation.
Technology advancement is the most flexible innovation in heated industry which get change as
per the dynamic needs of customers. Therefore, e-commerce has been the most useful platform
to serve Global customers and collaborate with new businesses.
Week 5
Research plays a vital role in analysing the information regarding a topic. Primary research
is one that is carried by the interviewer by himself and is called first hand research. On the other
side secondary research is secondly in basis and use of already published data is done. It is seen
that the use of secondary research helps to check already published articles and journals
regarding or topic (Hwang, 2022). The use of secondary research is done to analyse the trends.
The information regarding the trends in retail sector is already being done. The use of
authenticated articles helps to know more about the industry trends and explore them effectively.
Regular changes take place in retail sector and one of the major change that has taken place is the

innovation. The online shopping and artificial intelligence are the options that are being
provided that helps the retail sectors of the needs in once of customers effectively. The use of
right research methodology helps to carry on better results (Wolf and Siedl, 2021). It is necessary
to serve the requirement of the customers as per the research data. The use of right platform is
necessary to attain better results.
Figure 1https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/
economictrendsintheretailsectorgreatbritain/
There is regular growth in retail sector and it has been doubled since 1989. It is seen that
there are regular updates seen in the industry. The retail sector provides around 10% employment
in 2020 (Mayorova, 2019). They provide all the products to households and this enhances their
sales on regular basis. In Covid-19 the businesses serve the customers with the help of online
selling. The food stores have highest share in expenditure of around 38% and has increased to
44.5% in 2020. There is regular growth in the sector that contributes to GDP of nation.

Week 6 - Strategic Implications
 The use of latest technology such as artificial intelligence must be done by players of
retail sector to know about customer trends in market. It helps to serve the needs and
wants of customers in most suitable manner.
 The use of organic products must be enhanced so that the fitness freak people are served
effectively (Raksha, 2019). The organic products will enhance the target customer base
and provide best to the retail customers
 The option online selling of products must also be done by retail sector so that the
requirements of customers can be fulfilled at their doorstep. There is busy schedule of
everyone in today’s time and they want the option of online delivery of products.
 The use of digital marketing must also be done by the companies in retail sector so that
they are able to attract the customers (Hambur and La Cava, 2019). There is key role of
attracting the customers towards the business in order to gain competitive lead.
 The use of robotics will also simplify the business activities. The business in retail sector
can use the same in order to satisfy the requirement of customers.

CONCLUSION
From the above report, it is concluded that there are regular changes in retail sector. There is
key role of identifying the trends and following them so that better results are attained. The
global drivers are being analysed in the starting. The target customers of the retail sector are also
important part. The innovative idea that can be implemented in retail sector are mentioned. The
method of carrying research and details regarding the growth in sector are part of this portfolio.

REFERENCES
Books and Journals
Ballantyne, P., Singleton, A. and Dolega, L., 2021. A regional exploration of retail visits during
the COVID-19 pandemic. Regional Studies, Regional Science, 8(1), pp.366-370.
Barchi, G., Pierro, M. and Moser, D., 2019. Predictive energy control strategy for peak shaving
and shifting using BESS and PV generation applied to the retail
sector. Electronics, 8(5), p.526.
BE, M.V., 2019. Agile Supply Chain Management In Retail. Think India Journal, 22(4),
pp.6697-6704.
Guimarães, P., 2018. The resilience of shopping centres: An analysis of retail resilience
strategies in Lisbon, Portugal. Moravian Geographical Reports, 26(3), pp.160-172.
Hambur, J. and La Cava, G., 2019. Business concentration and mark-ups in the retail trade
sector. RBA Bulletin, December, viewed, 22.
Hwang, K.I., 2022. The pro‐competitive effects of foreign firm entry: Evidence from the Korean
retail sector. The World Economy, 45(5), pp.1587-1613.
Malik, R., 2022. Retail and Internet of Things: A Digital Transformation. In Advancing Smarter
and More Secure Industrial Applications Using AI, IoT, and Blockchain
Technology (pp. 251-260). IGI global.
Mayorova, E.A., 2019. Corporate social responsibility disclosure: Evidence from the European
retail sector. Entrepreneurship and Sustainability Issues, 7(2), p.891.
Norazizi, S.A. and Syafrina, A.H., 2021, November. Statistical modelling of annual retail sales
of good and services in the United States using generalized Pareto distribution model.
In AIP Conference Proceedings (Vol. 2423, No. 1, p. 070019). AIP Publishing LLC.
Pine, C., 2021. On trend: Luxury retail. Instyle, pp.44-46.
Raksha, N., Collaborative Economy as the Main Retail Trend. KNOWLEDGE ECONOMY
SOCIETY, p.151.
Vanaja, K. and Anukeerthana, M.M., 2021. A STUDY ON CONSUMER PERCEPTION AND
PREFERENCE TOWARDS SELECTED RETAIL STORES WITH SPECIAL
REFERENCE TO SINGANALLUR. EPRA International Journal of Multidisciplinary
Research (IJMR), 7(7), pp.1-
Wang, X., 2021. The Two Tales of a New Retail Ecosystem: Analyzing How E-commerce
Reshapes the Urban Retail Landscape through a Case Study in Shanghai,
China (Doctoral dissertation, Columbia University).
Wolf, M. and Siedl, S.M., 2021, June. Aging Workers in Industry and Retail Sector–A Holistic
Approach for an Age-Related Evaluation and Design of Work. In Congress of the
International Ergonomics Association (pp. 50-60). Springer, Cham.
Ziaie, A., ShamiZanjani, M. and Manian, A., 2021. Systematic review of digital value
propositions in the retail sector: New approach for digital experience study. Electronic
Commerce Research and Applications, 47, p.101053.