Impact of Pandemic on UK Retail: Economic Analysis and Policies

This report provides an economic analysis of the UK retail sector, focusing on the impact of the COVID-19 pandemic. It examines the significant changes in consumer retail expenditure, highlighting both positive and negative shifts. The report delves into the role of demand and supply, exploring how market forces and government policies have influenced the retail landscape. It discusses unique changes in consumer behavior, including the impact of lockdowns, and analyzes the effects of supplementary and replacement goods. Furthermore, the report addresses economic impacts, job shifts, and government interventions such as purchase quotas and discounts. Overall, the report offers a comprehensive overview of the economic challenges and adaptations within the UK retail sector during the pandemic, providing insights into market dynamics and policy responses.

Economics for business

Executive Summary
The challenge is focused on financial theory proposed by different economists but these
hypotheses have been deemed to provide the British government remedies and policies to help
control the condition of economic downfall. It also outlines the main improvements which the
British economy has undergone since 2020 in customer sales expenditure. Process of transition
in the UK market selling model to handle cash in 2020, the very same study looks at reforms
throughout the British government.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Unique changes occured in UK's consumer retail expenditure during pandamic-......................4
Significant variables that dictate pleasant and unpleasant improvements in the retail sector.....6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In present time the growth with development of economies, the purchasing process and positive
economic growth is important. The amount of demand and investment in a sector affects the
environmental situation of a country (Macroeconomics, 2017). The volatility in the economic
growth for durable services and goods relates to a transition in a nation's economy overall. 2
factors of global growth and prosperity are the free markets of demand and supply. Therefore the
aggregate economy of a nation is influenced by some variations or anomalies of customer
demand on retail products and services. This can be witnessed during a disease outbreak of
coronavirus that leads to economic recession. As a result, the United Kingdom has different
ethnicities shifts in customer retail demand that have contributed to an economic recession. With
the assistance of production and consumption research, the positively and negatively changes in
increased competition for retail products and services are addressed. In addition, different
government policies and initiatives are addressed below to grow the economy.
MAIN BODY
Unique changes occured in UK's consumer retail expenditure during pandamic-
In different sectors, the UK has experienced substantial swings in market retail demand
owing to the corona virus disease outbreak. In the retail sector, constructive and detrimental
shifts have been seen. Economy operates on a hybrid capitalism and communist society in which
certain firms are regulated and regulated by economy and government works with free
movement of consumption and production powers.
Role for Demand and Supply
The analysis of social theory with core elements, like abundance and preference, is
referred to as economics. It is focused on the fact that in a world, resources become limited and
scarce. The development factor is understood and included property, manpower, resources and
entrepreneurial services. Therefore, customers need to create decisions because of the lack of
capital and choose the nearest best option opportunity value (ARUL BEC lectures, 2020).
Consumer appetite is thus influenced by different variables dependent on available capital,
contributing to the option of substitutes. They select choices that give optimum marginal cost
and fulfillment. In another direction, the supply of products and services meets market demand.
Companies produce customers with the utility of capital and achieve market equilibrium.

Demand for a product is established at the best possible level and its availability contributes to
optimal resource usage. There are various markets that influence the operation of the economy,
such as ideal competitiveness, dominance, oligopolistic. This involves the number of consumers
and vendors, leading to extreme rivalry. Mostly in the industry where it has a huge number of
contracts of similar goods, it has perfectly competitive. Consumers have a number of choices that
help to choose the right solution. In economy, there are different regulating laws from which it
operates. That are discussed underneath:
The Demand Statute
It specifies throughout this legislation that some variables are approximately equal to one
another on a span of time, becoming the continuous demand and supply provided of products and
services. It is among the underlying rules under which price changes contribute to a reduction in
the number of products requested and conversely. This is focused through microeconomics,
where consumer demand is determined by dividing the change in the value by the increase in the
sum sought. This illustrates a negative association among cost and requested quantity regardless
of a person's lack of capital such as capital or discretionary income (Coronavirus will trigger
child mortality to increase. So what will anyone do with it? 2020) That is seen on the graph of
the decreasing slope graph.
Supply Rule
It specifies throughout this legislation it has a clear relationship with either the price or
quantity provided at a moment, with so many other variables being stable. The equilibrium
quantity relates to the amount of products and services provided or accessible to buyers on the
marketplace. This indicates that there is still a positive relationship here between product's
demand and quantity. This allows the provider's quantity supplied to curve upwards. This was
focused on micro-level economies, in which a market measures the actual production of
commodities.
Equilibrium in Price
Throughout this pricing mechanism, the quantity supplied intersects at a point. A
customer's optimum is named that point. It is a case where a customer's demand and availability
of a commodity are equal. It is considered quantity balance if the quantity requested correlates
with both the equilibrium quantity. The market balance is referred to as a market balance at a
market when market forces match for a commodity.

Due to multiple variables accessible to a client, it is influenced by variations in demand
and availability of products (Coronavirus: People save much but receive less in return, 2020).
Such considerations also modify the role of price and quantity demanded. In the event of a
reduction in output, it moves from side to side. In the event of a drop in the production of a
commodity, it shifts exciting and unique to downwards.
Therefore the economic laws listed above tend to assess the business position of a region.
It can be done by adding or measuring aggregates to evaluate at a macro level. This covers
combined production and consumption, consumer supply, balance of business, etc. They work
together in the modern world to make better choices and to formulate strategies and plans for the
community.
Significant variables that dictate pleasant and unpleasant improvements in the retail sector
The UK has undergone big crises in different sectors due to the pandemic situation. The
market for consumer products is impaired mostly by restriction and regulatory limits imposed.
As a result, the retail industry has experienced big changes in diverse markets leading to
manufacturing stoppages and full lockdown conditions since the pandemic epidemic. This has
contributed to favourable and unfavourable retail industry results. The key considerations
affecting market retail performance throughout the UK were as follows (Coronavirus: What are
the guidelines for facial masks or skin covers? 2020).
Considerations of local demand- Throughout the UK economy, market powers,
including production and consumption, are subject to convergence with each other. There seems
to be a limits at which some powers will interact with one another and that restriction is
established to identify the buyer who is able to fork out the financial benefits in the process for a

particular commodity. There became a serious lock-down scenario at the period of the COVID-
19 pandemic, whereby citizens were trapped in their homes and there was little clarity regarding
the prospects of the country's financial state (Covid: How would the prolonged furlough
mechanism work?, 2020). That there would be a significant effect on the supply of variables due
to lockout and because of this, there had been a pause on the company units as well as an
essential portion of the primary and secondary market i.e., were placed to a pause. These
divisions were severely disrupted and rendered the quantity supplied throughout the economy
totally down. The retail marketplace was the main influence of this disease outbreak era. The
members of the community did not have daily access to system market because of many safety
systems implemented by the government. As a result of the fear of corona contamination, the
wider populace was not involved in shopping for groceries. Both these factors have contributed
to a growth in online marketplace purchases of goods and services. Items such as facial masks,
sanitizers, etc. were included in the number of essential items. It was found that items such as
toilet roll, grocery items, antimicrobial pads were hoarded, that caused many retailers impose
capping limits on those products (Law of Demand Supply Law).
1. Supplementary and replacement goods: Mostly on grounds of their use or intent, there
have been 2 types of goods, because they are replacement and supplementary brands.
Perfect substitutes apply to certain goods and services that would be used for the actual
brand or can fulfil the same purpose. They are often seen to have a competitive market
for these replacement goods. To highlight, the different brands of phones commercially
available. This both are products that have the same function and can be quickly modified
by the client. Complementary products, but at the other side, can be defined as those

products that are being used simultaneously. The remaining commodity would be unable
to fulfil its function if either of the items is absent (NATIONAL RESTRICTIONS:
FINANCIAL Assistance FOR JOBS AND Companies, 2020). Pasta, for instance, and the
soups and recipes wanted to prepare pasta. If one item is absent, some will not be
abolished to serve their function. It is quite evident again from illustration that above
close substitutes have mutual demand. Changes in patterns and expectations in the
Market share were quite visible during the coronavirus era. Availability of substitutes of
various brands, for instance, display a competitive spirit in production, although it shows
a favourable nature for important products. For threat of demand scarcity and for semi,
people seemed willing to purchase any because all it demonstrated tough competition in
online purchasing patterns for customers had loads of spare time, that they used to
research several choices before selecting the final one. Supplementary items in
necessities such as groceries witnessed hoarding as mentioned earlier though not seeing
enough of a transition for non-essentials than the normal existence of production.
2. The economic impact and job shifts: The impact of remittances is the rise in prices for
goods that occurs caused by a change throughout the buying power of consumers arising
from their income. During an economy, as capital gets pumped in the capital cycle, it is
claimed that one individual's expense is also another person's revenue. For starters, when
customers buy a product, they invest on another brand and this increases in suppliers'
profits. After that, as they buy goods from another individual there, distributors can
become consumers (Rishi Sunak promises £ 350bn company emergency rescue kit,
2020). Then again from individual to individual, this loop continues on. The Coronavirus
pandemic improved the wealth and job rate of millions of people in the United Kingdom
in 2020. Since a lot of them are losing their jobs and being reduced to poverty. Any of
them get really poor salaries. This has a major impact on the price for several product
lines non-essential products or premium objects. As opposed to since, people keep saving
even more. Also figures from the official statistics department revealed that the geared
towards providing for UK residents saw an improvement of 8.6% against 5.4% during the
first 3 months of each year relative to the first 3 months of its previous year.
3. Purchase quotas, discounts and other state interference: There really is no direct presence
of the UK government officials throughout the economy and its powers on normal

consecutive months. Therefore the implementation of price regulation on certain
commodities includes themes themselves. This will be beneficial in keeping these goods
affordable for the community of general (Stimulus kit essential for UK's disadvantaged
families, study says, 2020). This entire procedure is carried out on a wide scale to protect
the needs of the general population. This approach is called a price limit which results in
multiple waste and inefficiency, such as wasteful resource distribution and
decompensated and reduced goods, etc. As market flooring, a further way b that
government cooperates throughout the business is named. This approach is exactly the
reverse of the mechanism described above, since it entails setting the price of a single
aspect of the economy at a cost and firms are not authorised to offer the property at a
higher higher than with the price set. It's really the government's responsibility to monitor
the business level of increase such that no uncertainty is generated in the state's financial
climate. Schemes such as furlough are implemented with the prime aim of safeguarding
employment for thousands of individuals who were vital to the regeneration within the
UK's demand-led market (U.K. Replacements and Complements. Grocers restrict goods
to prevent a fresh stockpiling surge, 2020).
Main UK governmental and economic policies to aid economic recovery from loss of consumer
retail spending,
Different measures have been adopted by the UK government to help economic growth
and generate stability in different functions. UK works on a mixed public position economic
framework contributing to government interference like shaping policies and implementation
projects to promote economic growth. This tends to influence business dynamics by adjusting
macroeconomic indicators, like taxation rates, banking rates, business activities, etc. The
influence of coronavirus mostly on environment has contributed to the state's numerous results in
stabilising its economic situation. Which requires discounted retail goods, quick recovery higher
dose and steps for the retail sector, etc. As the retail sector has experienced substantial
fluctuations, the whole country has been impacted by declining demand for different goods.
These items include luxurious, like jewellery, trendy clothes, home furniture, etc. Kitchenware,
plastics, as well as other non-recurring items involve reliable consumer products. Consumption
of everyday products required for people's lives has improved (UK market purchasing strategies
last saw until coronavirus, 2020).

Poverty program: It is the policy created by the British government to alleviate society at
large poverty and provide people with better services. It is crucial for the government to take the
right actions to establish an ambitious policy that is important for reducing inequality in society.
Many individuals are impacted by life mostly during critical situation of COVID 19 but it has an
effect mostly on UK economic environment. This has placed more pressure on persons for
complete provision of basic services and services.
Federal loans and awards
According to government initiative, it has already been decided that the governance of
Scotland, Great Britain and England does have an extra £ 16 billion for the intention of bailing
out their currencies. This has been decided that £ 1.1 Bn has been declared to company
organisations through federal grants and incentives for the purpose of delivering business support
so that they can benefit from financial hardship or crisis.
CONCLUSION
This can be argued from the aforementioned article that consumer buying affects the entire
economy. The business is dependent on the use and spending of a nation's state and citizens. The
variables that impact the powers of production and consumption are people's wages, a
manufacturer's price, the impact of replacement as well as other variables, etc. It has affected
businesses mostly because of the pandemic, leading to create secure situations and limitations on
a company's activities. Thus, owing to uncertain growth and inflation powers, other retail
products in the UK had huge consequences. Significant measures have been taken by this state to
facilitate the revival of the Uk market and affect market appetite for restructuring.

REFERENCES
Books and Journals
Macroeconomics, Fourth Edition by Krugman & Wells, 2017
ARUL BEC lectures, PowerPoint slides, & videos: ARUL & Young, 2020.
Coronavirus will cause child poverty to soar. So what can we do about it?. 2020. [Online].
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child-poverty-politicians-parents>
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https://www.bbc.com/news/business-53234128>
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Covid: How does the extended furlough scheme work?. 2020. [Online]. Available through:<
https://www.bbc.com/news/explainers-52135342>
Law of demand. [Online]. Available through:
<https://www.investopedia.com/terms/l/lawofdemand.asp>
Law of Supply. [Online]. Available through:
<https://www.investopedia.com/terms/l/lawofsupply.asp>
NATIONAL RESTRICTIONS: FINANCIAL SUPPORT FOR JOBS AND BUSINESSES. 2020.
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