Retail Trends and Online Shopping Impact: Sainsbury's Analysis

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Added on  2022/12/19

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This report investigates the impact of current retail trends, such as online shopping and e-commerce, on the growth and development of Sainsbury's in Tamworth, London. It explores the company's background, rationale for the study, and research objectives, including identifying the importance of retail trends, analyzing benefits and challenges, and suggesting ways to overcome obstacles. The methodology includes primary data collection through questionnaires and secondary data analysis. The results, presented through frequency tables and bar charts, reveal the positive impact of retail trends on growth, the importance of customer base and profitability, and the significance of AR-powered shopping experiences. The report concludes with recommendations for Sainsbury's, emphasizing the adoption of the latest technologies, secure digital payment options, and strategies to address competition and customer concerns. This research provides valuable insights into the evolving retail landscape and the strategies needed for success in the online shopping environment.
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Table of Contents
INTRODUCTION...........................................................................................................................3
Background of study....................................................................................................................3
Company overview......................................................................................................................3
Rationale of study........................................................................................................................3
Research aims and objectives......................................................................................................3
LITERATURE REVIEW................................................................................................................4
METHODOLOGY..........................................................................................................................5
RESULTS AND DISCUSSION......................................................................................................7
Frequency table............................................................................................................................7
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................11
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INTRODUCTION
Background of study
Retail industry has witnesses so many changes with the implication of globalisation and
technological revolution. However, retail industry has observed so much up-down after the
global pandemic COVID-19 that has changed the shopper shopping process and retail store
operations (Banach, Babcock and Dembry, 2018). The subject of this research is to identify
different trends of retail industry which supermarkets stores are adopting to resume their
business. Among the various retail trends the most likely trend utilized by the retail organizations
are online shopping. Retail organisations have now converted themselves majorly into online
retail counters for meeting the trends of retail industry and to gain larger customer base.
Company overview
For this research the chosen company is Sainsbury, Tamworth, London. Sainsbury is a
largest supermarket operator in the Tamworth, London, UK and is popular for selling quality of
products under one roof that are high-end within the reasonable price. Foundation of Sainsbury
was laid down in 1869 by John James Sainsbury with a shop at Drury Lane at London.
Rationale of study
The rationale behind this research is the rapidly changing retail trends in the retail industry.
It is analysed that there various emerging retail trends such as E-Commerce, customer
experience, ethics and values shopping, online shopping, digital payments etc. in the retail
industry to resume their businesses as per the current retail trend.
Research aims and objectives
Research aims
The aim of this research is “to identify the impact of current retail trends over the growth
and development of online shopping”. A study on Sainsbury, Tamworth, London.
Research objectives To identify the importance of current retail trends in online shopping.
To analyse the benefits and challenges faced by Sainsbury’s Tamworth, London due to
current retail trends.
To investigate the ways to overcome from the challenges faced by Sainsbury’s
Tamworth, London in online shopping.
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Research questions
What are the importance and benefits of current retail trends in the online shopping of
Sainsbury’s Tamworth, London? Explain the challenges faced by Sainsbury’s Tamworth, London in online shopping due
to current retail trends and also recommend ways to overcome from the challenges?
LITERATURE REVIEW
According to the perspective of Nici Pillemer, (2020), The Covid-19 has put the spotlight on
the online shopping retail trends and on the organisations that have been utilising the recent retail
trend of online shopping and the E-Commerce thereby giving them an advantage of increasing
their sales as well as productivity. Sainsbury is one of the largest UK grocery shopping store and
supermarket chain which can be highly benefited with the current retail trends such as online
shopping. Various importance and the benefits of the online shopping retail trade to the business
of Sainsbury in the Tamworth, London in increase their sales and profitability. The various
benefits and importance of Online shopping retail trend are: gives the lower cost to the business
as there is no requirement of the physical stores meaning lower maintenance cost and lower
infrastructure and building cost. Online shopping Sainsbury can easily collect the data of the
customers as over the online shopping apps and websites the consumers are required to provide
their name, email address, phone numbers, and residential address in order to receive their
orders.
According to the perspective of Team Linchpin, (2021), Online shopping retail trend is
becoming popular among the retail industry but due to this, Sainsbury is facing the various
challenges in operating its business productively and profitably. Challenges faced by the
Sainsbury in online shopping retail trend are: first challenge highly faced by the Sainsbury is the
large amount of competition with the big companies like Tesco and Lidl. Challenges faced by
Sainsbury in operating the online shop in business are the major challenge that is known as the
cyber security. Cyber attacks are risking the privacy of customer’s data and financial information
of organisation. Due to this the systems of Sainsbury are been infected by the viruses. The major
challenge that is faced by the Sainsbury due to the online shopping is the return and refund of the
product. Customers making the purchase are extensively returning back the orders and asking for
refund at large scale (Souiden, Ladhari and Chiadmi, 2019).
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The above challenges which are being faced by the Sainsbury due to the online shopping
retail trend for this the company is recommended the various methods to overcome these
challenges such as company should adopt the strict return and refund policies so that the
customers does not feel convenient in returning the products rather feel happy in shopping
through the online apps. Sainsbury is recommended to acquire the various cyber security
measures such as installation of firewalls and other security systems into the systems. Sainsbury
should take the regular data backups for the safety of information in case it is been hacked or
lost. To reduce the competitive edge of the competitors company should come up with low
pricing strategies and the effective packaging of the product so that the customers can shift their
interest from those companies to the Sainsbury in order to fulfil their requirements of the
products and services.
METHODOLOGY
Primary data
Primary data is considered to be the raw, fresh and the original data that is being
collected first time by the researcher for the accomplishment of the specific aim. Primary data is
collected from the particular original source which is been never written or stated by anybody
else (Just, 2020). There are the various ways to collect the primary data among which the most
popular and the well known techniques are questionnaires, market surveys, interviews, field
observations and physical experiments. The primary data collection is considered as time
consuming and expensive methodology. But it is also considered that for some kind of prominent
and complex research topics primary data collection is the only suitable methodology to conduct
the research by the researcher. For the following research on the Sainsbury, Tamworth, London
the research has used the questionnaire survey as a primary data collection source.
Secondary data
Secondary data is just opposite of the primary data collection in which the data has been
already altered and collected by some researcher that can be used by the current researcher to
conduct the research on the similar topic using the particular data. The secondary data is
considered as the finished data that is been already collected in the history. Using the secondary
data researcher is allowed to conduct the particular research or a project by rephrasing that
information according the topic of research. The secondary data is collected by some researchers
are for the general use of the public such as the National census (Nurmi and Niemelä, 2018).
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Secondary data is easily available over the online websites via internet technology. It is the less
time consuming and cost friendly data collection technique. The researcher can collect and
access the secondary data for the research using the following ways suggest text books,
newspapers, magazines, journals, online websites, articles and personal diaries.
Quantitative method
Under the quantitative methodology the collection of the data deals with a numbers and
statistics (Bayram and Cesaret, 2020). The quantitative methodology easy form of collecting the
data in which the researcher collects information of the data from the large number of audience
and then express that data into the research in the form of numbers and graphs. This form of
methodology requires the large number of respondents for collecting data and numbers in the
large quantity for the research to be quantitative. The most common quantitative methodology
methods are making measurements, experiments, observations, structured interviews, closed
ended questionnaires and survey design.
Qualitative method
Qualitative methodology is the form of collecting the data in the form of the words and
meanings this is completely different from the quantitative methodology in terms of gathering
information (Wang and Hernandez, 2018). This is the form of methodology in which researcher
represented in the form of the words. This methodology is useful for understanding the
experiences and concepts. Qualitative methodology is mostly used together in deep insight and
knowledge about the specific topic of the research which is not been well understood by the
other people. The most common methods of conducting the qualitative research methodology is
via interviews with open ended questions, literature reviews that contains the concepts and
theories and the observations in the form of words.
Current research on the Sainsbury, Tamworth, London the researcher is using the primary
and the quantitative method for conducting the research. Researcher has used the primary and
quantitative method because to analyse the current retail trends of the UK retail industry
quantitative method is the only suitable and appropriate method for gathering the information of
large number of audience in the form of the numbers and to collect the raw and the original data
primary method is required to be used to collect and analyse the raw information so that it can be
represented as the finished information in the form graphs.
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RESULTS AND DISCUSSION
Frequency table
Q1. According to your viewpoint, how changes in retail trends impact
the growth and development of an organisation?
Frequency
a) Positive impact 10
b) Negative impact 05
c) Neutral 05
Q2. What is the importance of retail trends over the success of an
organisation?
Frequency
a) Large customer base 07
b) Brand image 06
c) Profitability and sales 07
Q3. According to you, what are the latest technological trends should be
considered by a retail organisation?
Frequency
a) AR-Powered Shopping Experiences 11
b) Creative Brand Identities 09
Theme 1: Impact of retail trends over growth and development
Q1. According to your viewpoint, how changes in retail trends impact
the growth and development of an organisation?
Frequency
a) Positive impact 10
b) Negative impact 05
c) Neutral 05
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Interpretation: The above bar chart is based on the theme of impact of retail trends of the growth
and the development of the organisation represents that according to the viewpoint of the random
people, 50% that is 10 out of 20 of the people believes that the changes in the retail trends such
as the online shopping has created the positive impact over the growth and development of the
organisation. Other 25% believes that this has negative impact and other 25% have neutral views
(Owusu, 2020).
Theme 2: Importance of retail trends over the success of an organisation
Q2. What is the importance of retail trends over the success of an
organisation?
Frequency
a) Large customer base 07
b) Brand image 06
c) Profitability and sales 07
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Interpretation: The above bar graph represents that equal number of people states that larger
customer base and profitability and sales are the importance of retail trends over the success of
an organisation. Other remaining frequency states that the brand images importance of the retail
trends for the success of an organisation.
Theme 3: Latest technological trends should be considered by a retail organisation
Q3. According to you, what are the latest technological trends should be
considered by a retail organisation?
Frequency
a) AR-Powered Shopping Experiences 11
b) Creative Brand Identities 09
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Interpretation: The above bar graph represents that 11 out of 20 people says that retail
organisation should consider the AR- powered shopping experience for their online shopping
service. Other remaining nine people say creative brand identities should be considered by the
retail organisation.
RECOMMENDATIONS
From the above carried out study, it has been conclude that there are globalisation and
COVID -19 render various trends within the retail industries which are being more important for
a company to implement in their business to assure smooth organisational functioning. It is
highly recommended to the Sainsbury, Tamworth, London that the company should adopt latest
technologies for the online shopping retail trends there by implementing the safe and secure
digital payment options over the online shopping websites and the apps. It is recommended to the
Sainsbury a leading largest retail supermarket in the Tamworth, London to implement the
outstanding online shopping app and website with brilliant range of products for the customers to
hold the strong brand position that will help the company and grabbing the competitive edge in
the market of Tamworth London. It is also recommended to the Sainsbury, Tamworth, London
that along with the online shopping retail trend company should also adopt attractive and
reusable packaging for the delivery of the product so that customers feel fascinated and
influences towards buying the products through the online stores in order to acquire those
beautiful packaging box along with product they have ordered (Manohar and Kapur, 2019).
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CONCLUSION
It is concluded from the above research that it is very important for the retail organisation to
follow the current retail trends in order to sustain the competitive market situations. Technology
is one of the most important aspects that every organisation is required to adopt for the smooth
organisational functions as well as for the safety and security of the organisation as well as for
their customers (Kamin, and et. al., 2018). Among the various retail trends online shopping has
become one of the most popular trends among the customers and the retail counters to increase
sales and productivity. Online shopping has made easier for the customers as well as for the
organisation to conduct the process of ordering and delivering the products and services hassle
free and making the payment options more secure and fast.
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