COVID-19's Impact on Consumer Behavior and Retail Firm Profitability

This report delves into the profound impact of the COVID-19 pandemic on consumer behavior and the profitability of retail companies, with a specific focus on the UK market and a case study on Asda. It explores how consumer purchasing habits have shifted, with an increased reliance on online shopping and e-commerce platforms. The report examines the negative effects of the pandemic on retail profitability, including store closures and reduced foot traffic, and the challenges faced by retail firms in adapting to the changing landscape. It further identifies strategies for retailers to overcome these challenges, such as social media marketing, website updates, and improved distribution channels. The research methodology includes both qualitative and quantitative research methods using secondary data analysis. The findings highlight the need for retailers to adapt their strategies to align with evolving consumer behaviors and maintain profitability during and after the pandemic. The report concludes with recommendations for retail firms to enhance their competitiveness, including adopting digital marketing, offering online services, and focusing on customer retention.

PROJECT PROPOSAL AND
REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Aim:.............................................................................................................................................3
Objectives....................................................................................................................................3
Research questions.......................................................................................................................4
Significance.................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Consumer behaviour and changes in the same due to the pandemic of Covid 19.......................4
Profitability of retail companies get impacted in pandemic........................................................5
Challenges faced by retail firms in UK to run their business in the pandemic...........................5
Strategies to meet the challenges.................................................................................................6
RESEARCH METHODOLOGY....................................................................................................6
Research types.............................................................................................................................6
Research approaches....................................................................................................................6
Research philosophy....................................................................................................................6
Data collection.............................................................................................................................7
Data analysis................................................................................................................................7
Research ethics............................................................................................................................7
Reliability and validity................................................................................................................7
FINDING.........................................................................................................................................7
CONCLUSION AND RECOMMENDATION..............................................................................9
Conclusion...................................................................................................................................9
Recommendation.........................................................................................................................9
REFERENCES................................................................................................................................1
INTRODUCTION
The entire report focuses on to analyse the consumer behaviour and also the profitability
of retail firms in the covid-19. This report provides in-depth information that how consumer

behaviour has been changed in this pandemic (Mushtaq, 2021). ASDA is one of the British
Supermarket chain whose headquarter is situated in England. 10 company deals in groceries
Financial Services and general merchandise. This report provides literature review as well as
AIMS objective of the research. This report focuses on the behaviour of consumer which is being
changed in the pandemic of covid-19 and how the profitability of Retail firms has been suffering
from this time it’s also been mentioned in this report.
Aim:
To analyse the impact of COVID-19 on the consumer behaviour and profitability of retail
companies in UK: A study on Asda.
Objectives
 To examine the concept of consumer behaviour and changes in the same due to the
pandemic of Covid 19
 To analyse the way in which the profitability of the retail companies is impacted due to
pandemic of covid 19
 To identify the changes faced by the retail firms in UK in running their business in the
times of pandemic.
 To recommend appropriate strategies to meet the above mentioned challenges
Research questions
 What is the concept of consumer behaviour and how does this change due to pandemic of
COVID 19?
 What are the ways in which profitability of the retailer companies is impacted due to
pandemic of covid 19?
 What are the challenges faced by the retail firms in UK in running their business in the
times of pandemic.
 Which strategy can be recommended to meet the above mentioned challenges due to
change in consumer behaviour and profitability?
Significance
This is study well help the people to know the impact of covid-19 on the buying
behaviour of consumer apart from there is how the profitability of retail form has been impacted
by this. Apart from this it will assist all the retail companies to enhance their profitability. This
report will help other researchers as well those who want to make study on the similar topic.

LITERATURE REVIEW
Consumer behaviour and changes in the same due to the pandemic of Covid 19
According to Suau and et.al (2020) consumer behaviour has always been changing and
evaluating. Behaviour of consumer towards the products and services can change anytime. In
result the consumer behaviour has also changed even in this pandemic which is known as covid-
19. This pandemic has changed the purchasing behaviour of the consumer. Now consumer
isgiving preference to buy products online and with the help of e-commerce platform. Now
people have been forced to leave different and therefore their purchasing habits and behaviour
has been changed. Apart from this it is very risky to go out for buying small things because it is
very whisky for their health as well. Therefore many companies are providing goods and
services on their websites and also they have tied up with the E-Commerce platform so that more
and more customers can purchase the product of these companies. ASDA is also providing
different discount offers to the consumer so that their sales and revenue can increase independent
it is well. In the favour of this Güney and et.al (2021)states that consumer has quickly changed
their buying behaviour even they are but using basic amenities online. Now people are spending
more amounts on their personal care and various entertainments so that by staying at home they
can get all the products and services.
Profitability of retail companies get impacted in pandemic
As per the Bounie and et.al (2020)the overall profitability of retail companies has also
been impacted by the covid. As retail industry is the sector which has impacted a lot by the
pandemic in a positive and negative manner, because to stop the proliferation of covid most of
the countries having post log down there for the small businesses and also the big businesses and
retail Industries have to remain shut for months. This has affected their profitability and due to
remain shut did not get any kind of profit and sales for 3 to 4 months. According to Kim, (2020)
Retail Industry is still facing loss because people are not going out and there was no one is
visiting their physical stores is Bill for buying goods and services. Along with this Retail
Industry is trying to get the business by providing services and products online and on various e-
commerce platforms. But they are unable to gain profit like they were earning in past years.
Some retail Industries have to close their doors permanently because they were not able to
generate enough profit to repay their debts and obligations.

Challenges faced by retail firms in UK to run their business in the pandemic
According to Jo and et.al (2021) majority of retail firms in UK are still facing difficulties
in running their business smoothly in the pandemic. As the Government of this country is
continuously imposing lock downs and Curfews to protect the lives of people. Is the physical
stores of retail industries are closed and the forms are still facing challenges to sell their goods
and services. Before they are providing various discount offers to the consumers so that they can
improvise the sale even in the endemic. As per Das and et.al (2020) most of the retail firm are
selling their products on their website so that consumers can easily purchase their desired
products. Apart from this are continuously providing all the relevant information about their
products and services such as the price quantity and availability of the product so that consumers
can easily visit their website and order those products which are being needed by them. But even
though companies are not able to gain profit as per their expectations and set budget. So the
pandemic has interrupted the entire working of retail firms.
Strategies to meet the challenges
According to Vijai and et.al (2020) to cope up with the challenges detail form should
adopt different strategies so that they can gain the profitability again. The most focuses on social
media marketing because social media has millions of consumers so creating a social media
handle on the name of companies that can provide all the relevant information directly to the
customer. Even companies can impose pictures and various information about the product and
whatever latest product they are selling to customer they can also provide in that information’s
with the help of social media. So that more and more consumer can know about the latest trends
and offers given by the company and they can easily order them with the help of social media.
According to (Paksoy and et.al 2020) this is strategy will work in the favour of the company.
Apart from these companies should update their online website and also increase their channel of
distribution so that they can provide home delivery to the consumers this will also help the
company to improve the overall profitability. Apart from this by conducting various marketing
and promotional activities and especially by email marketing company can provide all the
necessary details about the latest products and services to their old consumers as well.

RESEARCH METHODOLOGY
Research types
Research can be defined as specific problems in which researcher can use the various
methods (Farkas, 2021). Basically there are two types of research such as quantitative and
qualitative research. In this researcher have selected the quantitative research for collecting the
various idea and thoughts.
Research approaches
This could help researcher for finding the various number for completing the research. In
this researcher have selected the descriptive research for conducting exposure data and make the
research more relevant.
Research philosophy
This generally, deals with the nature, sources and well-development of knowledge in
research. In this present researcher have selected the positivism which depends on the
quantifiable observation for analysis the statistical data.
Data collection
In this collection of data can make the research more relevant and appropriate
information related to topic (Gillan and et.al., 2021). In this researcher have selected the
secondary data methods in which collection or gathered data have been taken from the books and
journals.
Data analysis
In this data have been analysis while by using thematic analysis in which the researcher
can make the use of the secondary methods for making the relevant sources.
Research ethics
Research topic have not been copied from any other sources and not have been taken
from any wrong websites. Therefore, in future this report might be more helpful for researcher
for making more important report.
Reliability and validity
The research have been conducted while by using the right and relevant websites
(Hickman and et.al., 2021). Along with this no copy paste have been done in making the report.

FINDING
From the above secondary research this have been find out that consumer behaviour have
been changes due to having the pandemic and make sure about their changing in lifestyles. While
for which this might be important for making the high strategies in which organization can easily
work and make their consumer for working with long term stay (Khouja and Liu, 2021). As they
can also make their working strategies changes in against the consumer behaviour while for
which organization can make their more customer. In having the pandemic many of the
consumer loss their income sources while this might be discuss below in research. From which
they cannot afford the luxury and many other the products and services. This might be important
for them in knowing about those thing from which they can get much benefits. While for this
organization can take many steps in which they can keep their customer and make sure about
their products and services.
This have been also discussed that company should have huge profits while by offering
many more discount or offer, loyal customer cards and gift hamper to their customer. This might
sometime lead them for having the better growth and development (Donmez-Turan and Kiliclar,
2021). Therefore, this could be also important in having the knowledge about the various kinds
of profits things from which the organization make their income sources. Along with this they
can easily offer many more things through online and make sure about the quality of products
and services. Many of the business have to face the challenges in their business from which they
cannot make their income sources and cannot afford various thing from the customer sides. They
might be culture issues, attracting customer, retaining customer, supply chain management that
could lead for having loss in business. Moreover, this might be also important for taking the
better opportunities from which they can make their business products more affordable.
The organization are must be required to make their strategies in which they can make
their better income and easily make sure about their employee and customer to stay with long
term. Hence, business can build the objective for each customer. Make the proper
communication, developing self-concern supply chain etc. Almost this might help them for
having the better establishment and make their business for taking the market position. This have
also seems that organization can make the use of the social media, motivate employee while by
having better wages and compensation (Maqui and Morris, 2021). Moreover, while by providing
the adequate employee training, understand the market and engage customer. Basically,

employee training must be important from which they can easily make their customer while by
creating some of the better vision and mission. Through which the company can get more
benefits and make their high profits. Organization can also work with keeping the customer
expectation which could be important for the retailers to deliver as per the customer demand, and
also make sure for understanding how should they have access to some of the valuable data
insights.
The retailing firms in UK can make their business for working with having more
strategies in which they can have communication with existing network suppliers, using big data
brain for fulfilling strategies. This might be important for them in make their business succession
from which the company can make their business clients from various other countries. For taking
the market position the organization can also take their safety in this pandemic in which they can
work and make their customer for working with effective manner (Gordon, Jorge M and Rafael,
2021). In making the strategies company can required more resources from which they can have
their reducing turnover overall while by using various employee terms. Along with this also
important for knowing about the marketing position about their brands and products in which
they can deal over their customer.
While making the proper strategies the organization can make sure about those things
which could be important for them in making their consumer benefits due to having the
pandemic. In making the customer business can provide the employee right hiring, vacant
position in which they can work and make their customer for working with effective manner. In
providing the employee training and make them in such a way that they come to know about
how they can deal over their situation and how they can work with having the well possible
manner (Lawry, 2021). This could be also important in understand about the demand of the
customer from which the company can make their products and best for taking their market
position. Therefore, in using this the organization can make their products in such better way
from which that could help the customer in pandemic and make the sense in buying that goods.
CONCLUSION AND RECOMMENDATION
Conclusion
From the above report it had been concluded that, impact over the Covid-19 have been
mainly on the retailing sector. From which due to having the pandemic many of the consumer
have their changes their lifestyles and make sure about their not buy any luxury products and

services. This could be happen due to having the less income sources or some of the consumer
have left over their job. In which they cannot work with their life. This could be also important
for making the profits in which the organization can make their better market position and have
many more strategies for their customer.
In this research methods have been used for establishing about the various methods in
having the secondary research and make sure about the finding from which the sources have
been collected. While this could be also important in knowing about the valuable things and
make their business for working with more effective manner. Therefore, research methods in
which various methods form which the researcher make sure about the data collection or
gathered while by using the relevant websites. Along with the right sources for making the
secondary research and right books and journal have been used.
Recommendation
This can be suggested due to having pandemic the organization make the proper adoption
of technology. Through which they can set up the online business and have their more consumer.
While that could also lead them for making the huge profits. As they can keep the many offer,
discount and many other things so that could keep their customer attraction. In having the proper
attraction from the customer they can buy their products and services from which the
organization can bit over the loss and have their more profits. This could be also important in
taking the benefits from which they can work and have their more expectation in which they can
work and make their more clients.
For having the online business they can blog and make the proper use of social media
from which they can have huge follower and make their profits. In marketing department of the
organization they can hire the right and better employee who can make their advertisement and
make sure about the various trends that could work over their customer. In online business they
can place order and make their deliver free for some day along with this also make sure about
their less crowd in store due to having pandemic.
REFERENCES
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