An Analysis of Retail Industry Trends and Tesco Company for FY028

This report provides an overview of current trends in the retail industry, including the impact of e-commerce, sustainability, personalized experiences, and direct-to-consumer models. It then focuses on an analysis of Tesco, examining its strengths, weaknesses, opportunities, and threats through SWOT and Porter's Five Forces analyses. The report also incorporates a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors affecting Tesco's operations. Finally, the report offers recommendations for Tesco to improve sales, reduce expenses, enhance customer service, and adapt to evolving market conditions, emphasizing the importance of employee training, marketing, and technological innovation to maintain competitiveness and profitability.

FY028 Inquiry Based
Learning

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Current trends in retail industry...................................................................................................3
Analysis of Tesco company.........................................................................................................5
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Retail is the process of selling customers good and services through offering oof multiple
channels for distribution for earning of profit. The major obligation of retailer is to identify
product and services demands through the implication of supply chain.
Tesco is the British multinational grocery and general merchanting retail chains with
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. In this report
there will be clear discussion on the trends of retail industry and analysis of Tesco organization
followed with descriptive recommendation in order to success in the market.
TASK
Current trends in retail industry
2019 is the year, when the retail industry has enjoyed the record-breaking holiday buying
sessions. The change in consumer behaviour buying pattern can be considered as boon and
obstacle turned out to be clear dependence on the adaption of retailer (Vu, 2016). The change in
the direction of retail industry in upcoming years have heavy weightage in adaptation of
innovative technologies and change in consumer buying behaviour pattern.
The transition of e-commerce industries an online retail spaces have enabled in developing
the new brands by rehashing the maximum potentiality to sell respective products with wide
range of customer all over the world. The process the retail industry has been impacted by
several trends emerging for change in buying behaviour of consumers and influencing overall
development in which retail induct works. The trends are such as-
 Sustainability
One of important thing the brand has tried to incorporates is being in adaption of maximum
level of sustainability in product mechanism. The company are trying out the innovative
ways for reducing harmful impact on environment. This is such as brand are realizing for
incorporating imposrtance in getting the development in sustainable manner.
 New Store Concepts
Industry experts have predicting that’s retailer should understand the importance of both
online and offline or physical presence of store. Online store has looking to get clear
expansions into the physically relays opening up of the brick and motor stores as online so
are first and foremost. For example, it can be noted as Walmart’s recent move equips its
store employees with a device connected to Walmart’s online store. Retailer now understand
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that consumer love to have act of discovery as much as convivence matter to them. it can e
conclude as ecommerce is maturing which will become soon undisguisable form regular
intervals.
 Personalized Experience
The customer is important and integral part of business. So the brand are moving to provide
personalized experience to customers which will be helpful in generating the better sense of
goodwill and make the customer having more welcome. This is the reason the trends in
increasing patter all around the world.
 DTC Success
Direct the consumer have been looking turned out to be trends increasing at rapid rates all
over the world. This have following reason as the increase in digital stores and ecommerce
markets (Wood, Wrigley and Coe, 2017). Moving to be part the customer business are to be
built on premises as personal and direct communications with customer who are able to help
them in reaching the maximum level of interest.
 Private Labels
This trends in increasing day by days as access is getting to the larger audiences as result of
ongoing market place. E commerce related investment have been growing considerably for
looking establishment as private companies took into immense account of investments.
 Retail Apocalypse
The bricks and motor have to go into the solution’s which is incredibly strong as fact have
remain same and experiencing the little bit level of downfall. The number of brands who are
choosing the physical store in favour of online market place enormous as the retail
apocalypse.
 Lesser Bankruptcies
As the result, there is severe level of economic situation as looking into the positive growth
experienced within store. The lesser level of companies who have dealer bankruptcy in 2019
as opposed to the preview years ratios.
 Loyalty Rewards and Tech Shopping
In retail industry the development of the loyalty programs is gaining more level of
popularity. The brands are offering greater access a privileges as small fee or certain amount
of purchase. There is involves of attracting new discount to individuals who regularly
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purchasing the offering for store. On other have tech shopping is creating vast sea of brand
at competitive pricing as smarter and more efficient manner ever before.
 Ever Growing E Commerce
The trends of developing is not limited to big companies but even the smaller bran is opting
for opting wider success and large customer base (). There is extensive amount opening the
maximum level of effectiveness for the entire business development.
Analysis of Tesco company
Tesco have been brand recognised for the multiple business tactic and strategies. The company
have expanded rapidly very last few years becoming the largest retailer in UK ad filled up in
world. the firm is experiencing the 80 million shopping trip per week serving the 66 shopper per
second and earning the amount of £141,000 sales per minute (Al-Suraihi and et.al.). The
company is being recognized as the UK favourite ad biggest supermarkets by establishing itself
since its inception.
Pestle analysis have been examining various external factors such as political, economic, social,
technological (PEST) which impacts its business along with legal & environmental factors. The
PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the
brand.
 Political factor
In recent time company is facing the china trade war in order to gaining the proper ground
sale tampering each market. Th war in between the countries a so instance that the regulation
related with chain have frowned to accepting British producers. This is negatively impacting
sale of company.
 Economic factor
The company should be aware of major changes in delivery model and additional cost
associated with resigning company as massive and integral part. the pricing of products is
looking for influencing sale under pressure, or inflation exists, products of daily need, must
be priced accordingly.
 Social factor
The shift of customer attitude towards the organize and hygienic product. The company is
trying to manage ere better capturing customer base by promoting the organic ad satisfying
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customer base. The firm has believe in benefiting society and local hiring generated
employments in various countries.
 Technological factor
The firm is developing ore of shopper experience by creating more new technology for less
cashier an billing facilities (Guo and Wang., 2019). This will b helping the consumer froe
standing in long queue and free the for hassle free billing. Tesco s invested in some different
energy projects to race the carbon foot prints.
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SWOT analysis
Strength Weakness
 Biggest grocery retailer in UK.
 Leading level of market share
 The company is divertive at
geographical level
 Increase in diverse market and
product range
 Superior technology usage
 Efficient supply chain network.
 The firm have filed to succeed in operation
in US and japan along with decrease in
operating profit.
 The firm have accounted the fraud trails and
scales.
 There is identification in low cost strategy
and financial errors.
 Poor operational performances and
introducing of cupboard controversy.
Opportunities Threat
 The firm have identified as the
expansion the jack business to
compete with low cost reive
Aldi and Lidi.
 There is strategic alliances and
joint venture by improving the
performance in differ region
 The firm have online shopping
smearing market in developing
more countries and expensing
be business to emerging
countries.
 Tesco faced in social media as result the
firm been boycotted as store disrespectful
against the Tesco.
 There is fake farm which is leading
customer and marketing of its products.
 The firm have coemption with European
union due to Brexit referendum and cost
matters posed for Tesco.
 Competitions with supermarket giant as
Tesco’s biggest competitors, Tesco’s market
position can be threatened.
 There is more economic crisis and credit
crunches moving to to government
regulation, legal and tax matters and moving
to critical region.
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Porter five force analysis
Power Justification degree
Bargaining power of
customer
As the customer have many other firms such as
Aldi, Lidl, and Poundland) vying for the same
customers, and compared to Tesco
high
Bargaining power of
suppliers
There is bullying supplier over prices cut. they
are behaving like mafia for tactics to squeeze
suppliers
high
Threat of new entrants UK supermarket is ow in term if looking for
capital requirements. The firm is enjoying the
economies of scales and it other core
competencies.
low
Rivalry among the
competitors
The firm is the market leader, the pressure from
the nearest rivals is intense. Likewise, price-wars
launched by Aldi and Lidl are affecting Tesco’s
profit margins.
Moderate
Threat of substitute The customer has wide range of product by
selling substitute. So, the company should proper
product differentiation.
high
Recommendation
Retailer tends to have basic path to success in order to increase sales and reduces
expenses for improving the profitability in consistent manner. The firm should look pay proper
attention reducing shrinkage by detecting and preventing employee theft. The firm should look
as simple pricing mistakes which will cost retailers quite ambit (Evans and Mason, 2018.). The
average shrink percentages in the retail industry have two percent sales
Moving next to that increasing in sale opportunities to the customer and planning the
expansion into the multi-channel environment. The retailer hound learning notice and take
advantages of every possible opportunity to sell.
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Recommendation 3 is improving the customer service as to have better way of business to
improve the customer service. Retailer have developing the customer friendly policies, train the
provide customer services and leer to have create basic level customer loyalty.
To have proper relation with suppliers and create the best value. There is selecting the
suppliers, considered proper shipping and term of sale and other different factor fostering vendor
creating social value. There is deterring of social details to erode the retail bottom line.
The firm should ask proper attention in increasing the marketing to advertise everything in
permeant manners. The lack of advertising as losing the potentiality customer right now. there is
transiting markets and having spared in bets manner (Aiello. and et.al., 2020). The firm should
look at the better level of experience in working to lower the expenses in to get the business on
better way and return the increase in profits in bottom of lin. This have been done through
implementing of the operating expense and different strategies.
There is need to have better level of innateness in piece of technologies for amazing level of
results an live for long without any far. It can be done as having investment on time saving
strategies. Moving to be part the customer business are to be built on premises as personal and
direct communications with customer who are able to help them in reaching the maximum level
of interest.
It is important for Tesco have providing the effective level of training for staff as to provide
better information o staff. as the part of retail employees. The front line should be trained in
order to make reduction in shrinks, improve better level of customer services and increase ale
opportunities.
CONCLUSION
From the above fie, it can be concluded as the change in consumer behaviour buying pattern
have been both boon and obstacle which have clear dependence on the adaption of retailer. The
customer business built on premises as personal and direct communications with customer who
are able to help them in reaching the maximum level of interest. The firm should look as simple
pricing mistakes which will cost retailers quite ambitious. The average shrink percentages in the
retail industry have two percent sales (Wood, Wrigley and Coe, 2017). The company is being
recognized as the UK favourite ad biggest supermarkets by establishing itself since its inception.
Online store has looking to get clear expansions into the physically relays opening up of the
brick and motor stores. Tesco have been brand recognised for the multiple business tactic and
9

strategies as the firm different energy projects to race the carbon foot prints. There is selecting
the suppliers, considered proper shipping and term of sale and other different factor fostering
vendor creating social value.
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REFERENCES
Books and Journals
Online
Vu, M., 2016. IS THE BALANCED SCORECARD USEFUL IN A COMPETITIVE
INDUSTRY?: Using Tesco PLC as a case study in the UK grocery retail industry.
Wood, S., Wrigley, N. and Coe, N.M., 2017. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1),
pp.31-57.
Al-Suraihi and et.al., The Effect of Customer Relationship Management on Consumer Behavior:
A Case of Retail Industry in Malaysia.
Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between
2015 and 2018 in comparison with Tesco and Morrisons. American Journal of Industrial and
Business Management, 9(2). pp.325-341.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Aiello, L.M. and et.al., 2020. Tesco Grocery 1.0, a large-scale dataset of grocery purchases in
London. Scientific Data, 7(1). pp.1-11.
Wood, S., Wrigley, N. and Coe, N.M., 2017. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1)
pp.31-57.
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