FY028: ASDA Retail Trend Analysis and Recommendations

This report delves into the retail industry, examining current trends such as cashier-less stores, virtual fitting rooms, machine learning for demand forecasting, and personalization. It then focuses on ASDA, a major UK supermarket, analyzing its strategies through primary research, including customer questionnaires. The analysis reveals ASDA's strengths, like adapting to online shopping, and areas for improvement, such as enhanced personalization and the implementation of virtual fitting rooms and machine learning for demand forecasting. Based on these findings, the report provides recommendations for ASDA to improve customer loyalty, embrace sustainability, and implement technologies to enhance operations and meet evolving consumer demands. The report highlights the need for ASDA to adopt innovative technologies and strategies to maintain a competitive edge in the rapidly changing retail landscape.

Inquiry based learning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Trend in retail..............................................................................................................................3
Analysis of an organization.........................................................................................................5
Recommendations........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................10
Questionnaire.............................................................................................................................10

INTRODUCTION
In this competitive era, organizations are focused upon their products and services so that
they attract customers towards it. Further, with the rise of personalization and digitalization,
retail industry becomes more advanced. In the same way, current study also shed a light upon
different trends that contribute towards a growth of an industry. Thus, the chosen firm for this
report is ASDA which is one of the top multinational firms in UK and also highlights the issues
if company faces. Therefore, study will determine the key trends within a retail industry and
analyze the organization through primary research. Lastly, it recommend the ways to the firm in
order to comply with new changes.
Trend in retail
Transformation in a digital space has completely reshaped the shopping behavior of the
customers and focused to enhance the online experience as well. Due to pandemic, customers
behavior changed overnights as health and safety concerns. Therefore, there are numerous
changes identified within retail industry. Some of them are as mentioned below:
Staff-free and cashier-less store: It is one of the topmost priority of all the customers
due to pandemic. Most of the people become cashless, as they prefer to pay online. Also, with
social distancing become a relevant for protecting public health in 2021, cashier-less store are an
important retail trend which need to be consider (Noghabaei and et.al., 2020). For example,
Amazon uses such advance technologies i.e. Amazon Go Grocery Model where system track
what customer place into their cart and when they leaves, store will automatically charge from
the credit card. Now, bar-codes and scanners are used in order to provide cashless facilities to
their customers.
Virtual fitting rooms: Another trend which is attract range of customers by 90% and
from 2021, it cannot be ignored. It is the most intriguing innovations in retail industry which
utilizes the Augmented reality (AR). As, try-before-you-approach is more difficult during
COVID-19 pandemic and this facility is a unique position that helps customer to make their own
choice (7 trends to change the retail industry, 2020). Firm like, Kendra Scott, Etsy already uses
such technology in order to provide good customer experience. On the other side, Virtual

shopping can be done on customer’s smartphones in which ARKit is one of the best Virtual
reality applications in 2021.
Machine learning for demand forecasting: In the time of pandemic, it is necessary for
the company to determine the customer’s demand and then offer products accordingly. For that,
machine learning is used for demand forecasting (Paik and Lee, 2021). This innovations improve
the automatic demand forecasting, inventory planning and relationship with customers so that
company’s sales increases in positive manner. Further, Lachine learning approach is versatile
and adaptive that identify the trend of market. Most of the renowned companies like Amazon,
Asos uses ML learning in order to forecasting the customers.
Robots and Autonomous vehicles: This technology is started at the end of 2019, but not
all the companies complied with the same. Such that Safeway, a supermarket chain provide a
new driverless cart service to deliver the groceries to local residents. Serve Robotics worked for
Uber and now, Walmart is also getting ready to deploy with fully autonomous trucks to deliver
products immediately (Ying and et.al., 2020). Through such facilities, companies are able to
reduce the workload of human, however it affect the employment rates within a country. So, it
can be stated that companies must focused upon such advance technologies in order to improve
their operations and maintain long term relationship with customers as well.
Personalization: Another trend of retail industry which increases year by year. It means
that sending a list of items to the business or shopping with an employee using mobile video
technology within big brands. This is trendy during pandemic times, because people were strictly
forbid to go outside and that is why, this technology used in order to provide especial treatment
to their customers. The personalization trend also identified during pre-covid and it increases the
experience of customers towards a business.
Through the above, it has been analyzed that the trend within retail sector is keep changes
as per the change in markets. Recently most of the business converted into online shopping
because the craze of online purchasing increases. Also, no one prefers to go outside and that is
why, trend of online shopping increases during and post Covid-19.

Analysis of an organization
The analysis of an organization is performed with the help of primary research. In this, 10
regular customers of ASDA selected and due to Covid-19, the questionnaire is sent on their
personal email-id.
Through questionnaire, it has been analyzed that majority of the customers are happy with the
service offered by the ASDA because by analyzing the market trend, company adjust
accordingly and offer the products. With the help of primary research it is also interpreted that
most of the users are stated, company has robots at the ground floor. Company is trailing the use
of fully autonomous floor cleaning robots that assist to enhance the efficiency of the operations.
Jin and Shin (2020) stated that changing the policy and process as per the time, helps company to
enhanced the brand image and improve efficiency. In the context of ASDA, it become the first
UK supermarket who uses artificial intelligence within its business. Further, it helps a company
to increase efficiency and minimize the burden of customers as well.
Moreover, as per the customer’s views it has been analyzed that they mostly prefer online
mode of shopping as compared to offline. This in turn reflects that company grow its market
share by adding effective features into its business which contribute towards a profitability. Also,
after pandemic, it is essential for the companies to offer online products in order to meet the
demand of customers and enhanced their brand image as well (Friedrich, 2020). Company still
does not have specific and advance personalization facilities to their customers which need to be
focused. As majority of the users stated that quoted company do not have effective personal
treatment to their customers. Along with this, company still not uses any Machine learning in
order to analyze the demand forecasting. If company is focused upon such thing, then it increases
the overall performance as well as enhanced the customer base.
In addition to this, it has been also analyzed that company have effective home delivery
services, such that it tie up with Uber in order to deliver the best services. Earlier, this facility
does not offered by the firm, but analyzing the demand of customers ASDA started to invest
within such things in order to generate the best outcomes. Further, it also checkout with HCL
technologies to drive IT transformation (Verma, Malhotra and Singh, 2020). It is so because
company operate s more than 600 stores across UK and also have more than 12000 employees,

for that there is a need to build a strong central data management platform which can be done
with the help of partnership with HCL technologies.
However, ASDA keep the demand of customers in mind and that is why, developed
process of Data mining and Electronic Point of Sale system in each store. This helps to gain high
market share and provide better customers shopping experience. With the help of primary
research it is also identified that company does not develop any virtual fitting rooms for their
customers, whereas most of the super brand uses the same in order to provide innovative
customer experience (Al-Suraihi and et.al., 2020). Thus, it can be stated that in the context of
current trend, company uses most of the advance technologies, whereas it investigate to comply
with more as well.
Recommendations
Through the above analysis, it can be stated that ASDA has a strong brand image in the
market because it make changes in its business operation by identify the market trend. For
example, from 2015 onward people focused upon online shopping, that is why, it tie up with
Uber (online delivery company) in order to provide effective home delivery options. However,
there are many loopholes identified and to remove the same, here is a list of suggestion:
 In order to improve the overall performance and comply with trend, it is suggested to the
ASDA to start focusing upon personalization. With the help of this new feature, company
is able to enhance the customer loyalty. Also, in the time of pandemic, provide personal
assistance to their customers will help to increase customer base. That is why, ASDA
must recruit employees and with the help of mobile videography, firm help customer in
their purchasing (Hu and et.al., 2021). Through this, customer gets the products as per
their choice which in turn increases the overall brand image of a firm.
 As per the current scenario, companies are focusing upon social distancing due to
COVID-19, so ASDA should use this option and convert it into an opportunity. As it is
deal with cloths and accessories, that is why, using virtual fitting rooms will be beneficial
to enhance the sale as well as improve the customer loyalty. That is why, it is suggested
for the company to focused upon this application that helps to save time as well as
minimize the impact of infections as well.

 On the other side, companies are also concern about sustainability and always make
efforts to use different CSR approaches. Similarly, ASDA is also opting range of
sustainability approaches in order to protect environment from harmful gases. Further,
majority of the people globally become more concerned about the environment as a result
of COVID-19. Therefore, ASDA has reasserted their commitment to operating more
sustainably and reduce the use of plastic bags. That is why, it is suggested to the company
to reusing the packaging and avoid the waste throughout their entire production. Also,
ASDA must minimize the use of paper and implement technologies that assist to save
time and become digitally. Through this, company is able to improve the overall
performance and become sustainable month by month.
 In UK, supermarket also detect the thieves through implementing advance technologies
such as Sainsbury who uses machine learning to detect when someone takes an item and
place it in their pocket. Therefore, it is recommended to the quoted firm to implement
such advance technology which helps to records the interaction, and it sees the suspicious
activity, immediately alert security staff. The records shows that with the help of this
technology Sainsbury prevent almost 6000 thefts in its 20 stores from 2019 to 2020 (8
ways UK supermarket brands are using technology to drive retail transformation, 2020).
Thus, it is a good opportunity for the company to invest in such things which provide
benefits and minimize the time which employee invests within inventory.
 As per the new guideline of COVID-19, supermarket ensured about crowd control as well
as social distancing. For that company start making initiatives by implementing advance
technologies. That is why, it is also recommended to the ASDA to implement technique
like automated traffic light systems which informs customers when they enter stores
based upon the individual limits and also maintain the social distancing. This traffic light
signals signifies as per the crowd inside a store like green light shows shopper can enter,
whereas red signifies door remain closed due to required customers and till then customer
have to wait outside (Brandtner and et.al., 2021). This helps to save the people from
infection and also follow the pandemic guidelines as well. Through this manner, quoted
firm will easily provide proper attention to each customer and focused upon profitability.

CONCLUSION
By summing up above, it has been concluded that with changing market, companies must
implement advance technologies which in turn improve their operations and profitability. It is
cleared from the above that ASDA is the first UK supermarket who implements advance
technologies in its business operations. Similarly, there are numerous trends identified by the
report which includes ML programs for demand forecasting, AI and robotics, focused upon
personalization and virtual fitting rooms. Apart from this, it has been summarized from primary
research that customers are happy with the products and services offered by ASDA, along with
usage of advance technologies. Further, study suggest different ways through company will be
able to meet the demand of customers.

REFERENCES
Books and Journals
Al-Suraihi, W.A. and et.al., 2020. The Effect of Customer Relationship Management on
Consumer Behavior: A Case of Retail Industry in Malaysia. International Journal of
Management and Human Science (IJMHS). 4(3). pp.32-40.
Brandtner, P. and et.al., 2021. Impact of COVID-19 on the customer end of retail supply chains:
A big data analysis of consumer satisfaction. Sustainability. 13(3). p.1464.
Friedrich, D., 2020. How regulatory measures towards biobased packaging influence the
strategic behaviour of the retail industry: a microempirical study. Journal of Cleaner
Production. 260. p.121128.
Hu, S. and et.al., 2021. A big-data driven approach to analyzing and modeling human mobility
trend under non-pharmaceutical interventions during COVID-19 pandemic. Transportation
Research Part C: Emerging Technologies. 124. p.102955.
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.
Noghabaei, M. and et.al., 2020. Trend analysis on adoption of virtual and augmented reality in
the architecture, engineering, and construction industry. Data. 5(1). p.26.
Paik, H. and Lee, J. H., 2021. Analytical framework, typology and retail experience design
process for integrated relational brand experience. International Journal of Retail &
Distribution Management.
Verma, N., Malhotra, D. and Singh, J., 2020. Big data analytics for retail industry using
MapReduce-Apriori framework. Journal of Management Analytics. 7(3). pp.424-442.
Ying, S. and et.al., 2020. Managing big data in the retail industry of Singapore: Examining the
impact on customer satisfaction and organizational performance. European Management
Journal.
Online
7 trends to change the retail industry. 2020. [Online]. Available through:
<https://mobidev.biz/blog/7-technology-trends-to-change-retail-industry#nav7>.
8 ways UK supermarket brands are using technology to drive retail transformation. 2020.
[Online]. Available through: <https://www.lsretail.com/blog/ways-uk-supermarket-brands-
are-using-technology-to-drive-retail-transformation>.

APPENDIX
Questionnaire
.demographic information
Name:
Age:
Gender:
1. Are you satisfied with the ASDA products and services?
 Yes
 No
 Don’t know
2. Which of the following mode you prefer during shopping?
 Online
 Offline
 Both (As per the situation)
3. Do you know, ASDA uses robotics in its operation system?
 Yes
 No
 Don’t know
4. Is there any personalization facility offered by ASDA?
 Yes
 No
 Don’t know
5. Do you agree that company have effective home-delivery services?
 Strongly agree
 Agree
 Neutral

 Disagree
 Strongly disagree
6. Do you think, company should invest into Virtual Fitting rooms?
 Yes
 No
 Don’t know
Theme 1: Customers are satisfied with the products offered by ASDA
7
2
1
Are you satisfied with the ASDA
products and services?
Yes
No
Don’t know
Theme 2: Most of the customer prefer Online mode

Online Offline Both (As per the
situation)
0
1
2
3
4
5
6
7
8
8
1 1
Which of the following mode you
prefer during shopping?
Frequency
Theme 3: Yes, ASDA uses robotics in its operations
Yes No Don’t know
0
1
2
3
4
5
6
6
3
1
Do you know, ASDA uses robotics in
its operation system?
Frequency
Theme 4: No, there is no personalization service offered by ASDA

2
8
Is there any personalization facility
offered by ASDA?
Yes
No
Don’t know
Theme 5: yes, ASDA have effective home delivery services
Strongly
agree Agree Neutral Disagree Strongly
disagree
0
0.5
1
1.5
2
2.5
3
3.5
4
4
2
1
2
1
Do you agree that company have
effective home-delivery services?
Frequency
Theme 6: Yes, ASDA must invest upon Virtual fitting rooms.

Yes No Don’t know
0
1
2
3
4
5
6
7
8
8
1 1
Do you think, company should invest
into Virtual Fitting rooms?
Frequency