Sainsbury's Response to COVID-19: A Study of Challenges and Strategies

This report examines the issues and challenges faced by Sainsbury's due to the COVID-19 pandemic, focusing on its impact on performance and productivity, and the strategies developed to tackle these issues. It reviews the literature on the pandemic's effects on the retail industry, highlighting the importance of adapting to changing business conditions and maintaining organizational efficiency. The research methodology employs Saunders' research onion, utilizing a positivist philosophy and a deductive approach with questionnaire surveys for data collection. The study acknowledges limitations and defines the scope as providing insights into retail management during the pandemic. Sainsbury's faced significant costs related to safety measures and restructuring but also experienced increased sales in certain areas. The strategies implemented included boosting online sales, focusing on essential operations, and carefully managing expenditures for both short-term survival and long-term success.

Advanced Research
Methodology

Contents
INTRODUCTION...........................................................................................................................................3
LITERATURE REVIEW....................................................................................................................................4
Covid 19 impact on Sainsbury’s performance and productivity..............................................................5
Strategies developed by Sainsbury to tackle Covid 19 related issues and challenges.............................6
RESEARCH METHODOLOGY.........................................................................................................................7
STATEMENT OF ETHICS................................................................................................................................9
TIMELINE.....................................................................................................................................................9
REFERENCES..............................................................................................................................................12

INTRODUCTION
The retail business is a vital element of the UK economy, accounting for over 5.1 percent of
GDP. The global health approach to the coronavirus (COVID-19) epidemic has had a major
effect on the UK and worldwide industries. Lockdown limitations and social alienation, in
example, have had an influence on the retail business, due to alterations in the items & services
people purchase and how people buy them, with certain sections of retailing going to fair better
than many others. Having 306,000 stores working 2.9 million population and a pre-Covid-19
annual product sales of £394 billion, shopping is one of the most essential industries of the UK
economy. Around 33% of household consumption is spent in this sector. Covid-19 has had a
significant impact on UK retailing; however the impacts are not universal, because they are, to
some part, speeding up fundamental changes that are already underway. Some of the harm
caused by the lockdown has been reversed since restarting, but the sector's lengthy orientation is
unknown.
Research aim: “To identify the issues and challenges faced by retail industry due to COVID
19”: A study on Sainsbury
Research Objective:
 To analysis the issues and challenges faced by Sainsbury due to Covid 19
 To determine the impact of Covid 19 on the performance and productivity of Sainsbury
 To examine the strategies developed by Sainsbury to deal with the issues and challenges
faced due to Covid 19
Research Question:
 What are issues and challenges faced by Sainsbury due to Covid 19?
 How Covid 19 impact on Sainsbury’s performance and productivity?
 What are the strategies developed by Sainsbury to tackle Covid 19 related issues and
challenges?
Research limitation: This study is being carried out in order to gain a better awareness of the
repercussions that retail businesses will suffer as a result of the COVID-19 pandemic. Retail
stores were forced to close due to the lockout, and all transaction was conducted online. Satisfied

customer dropped as a result of the slow delivery. This research is being carried out in order to
assess and comprehend the many ways wherein Sainsbury may resolve the challenges posed by
COVID-19.
Research scope: The scope of this study is rather broad. It offers information on shop
administration and how they have dealt with the COVID-19 pandemic. The ramifications that
retail organizations confront will be explored in this section. There is an analysis that is used to
build interpretation in the context of addressing the problems experienced during COVID-19.
LITERATURE REVIEW
The COVID-19 pandemic has created a great deal of disturbance, and as a result, there has been
a change on a worldwide scale. Manufacturers, merchants, and supply chain management staff
all faced the brunt of the pandemic's effects. The deep outbreak began in March 2020, and
retailers' providers have been suffering losses since then. Important decisions have been made in
response to shifting business conditions (Carracedo, Puertas and Marti, 2021). It is critical for
retail sectors to control the losses incurred as a result of the COVID-19 epidemic and to
concentrate on improving and maintaining organizational efficiency. This study is being
performed to determine how much money Sainsbury lost during the epidemic. The diverse areas
of industries experienced obstacles during the COVID-19 epidemic. Growth in the retail business
first suffered significant losses. Businesses have attempted marketing their products over the
internet after several months. It aided in sustaining the business's wrath toward prospective
clients and preserving revenues. During a pandemic, it's critical for Marks and Spencer to keep
an eye on vendor adherence and safety. Somewhere at moment of outside, vendors must be given
instructions on how to recognize the risk, mitigate it, and manage the reactions to changing
conditions. Numerous recommended areas have been defined in addition to have effective and
coherent communications that will promote and preserve visibility.
Sainsbury's anticipates a financial blow of up to half a billion pounds as a result of Covid-
19, however that this would be compensated by increasing sales and corporation tax reduction.
Sainsbury's simulated many possibilities for the following months, with the fundamental
principle seems to be that shutdown limitations will have relaxed by the end of This month but
that operations will be impacted until at least mid-September, similar to Tesco's latest results. It

also anticipates that in the intermediate term, consumption for consumer items and clothes would
be sluggish (Skawińska and Zalewski, 2021).
These vendors must improve the displaying and procurement of wants to deport and
locations. There seems to be a demand for continuous connection with vendors, which may be
accomplished by call options or online meetings. Manufacturers are given clear instructions,
which have resulted in responsible safety management at the workplace. At the workplace, it is
ensured that all federal standards concerning the Cover 19 epidemic are observed. The vendor
partnerships must handle the government's advice and develop the essential methods for
governmental sign displaying. The need for vendors to exchange best business practices, which
has emphasized their commitment for safety procedures.
The COVID-19 pandemic has had a significant influence on Sainsbury's revenues. These
firm is dedicated to assisting British producers, and during the pandemic, the business went
above and above to assist those agriculture. Farmers and suppliers both have to deal with several
obstacles. Farmers received full backing from Sainsbury's. The following are the actions taken
by Sainsbury during the COVID-19 pandemic:
• Starting a campaign to help British farmers, emphasizing the obligations to British farming
households. This includes launching initiatives to improve the agriculture industry and manage
output (Cahyani, Hermawanto and Nasution, 2021).
• Various varieties and formulas for assisting vendors with COVID-19 monitoring in food
processing.
• Introducing online planting and fresh flowers, which aided providers in filling demand gaps.
• Enhance beef sales promotions and giving funding for new product innovation.
Covid 19 impact on Sainsbury’s performance and productivity
While the expense of safeguarding clients and colleagues, and also poorer gasoline,
department stores, clothes, and financial institutions, are likely to have a profit effect of over
£500 million, this should have been compensated by greater food sales and roughly £450 million
in stamp duty reduction. Supermarket sales have grown year round, according to the store,
thanks to investments in pricing, entrance price level categories, and new and enhanced items. It

also increased online sales by 7.6% and comfort purchases by 1.3%. As part of a commitment to
offer 200 entry-price point commodities throughout 15 own-brand categories, prices of a variety
of fresh fruit items, including apples, mangoes, and avocados, were reduced to 60p.
Supermarkets have been one of the biggest winners throughout the epidemic, but they've
also incurred significant Covid-19 expenditures, ranging from maintaining clients and employers
safe to sick compensation for employees who had to shield. Sainsbury's also incurred £617
million in extraordinary expenses. The majority of this was due to the closure of hundreds of
independent Argos locations when the company restructured. Although foodstuff and Retail sales
are up, the expense of keeping employees and customers safe throughout the epidemic has been
expensive. Our full-year direct COVID-19 expenses were £485 million, resulting in a 39% drop
in underlying earnings for the year. They are glad to recommend a full-year payout in accordance
last year's, which would shield investor earnings from the full effects of COVID-19 on earnings
(Shen and Sun, 2021).
Strategies developed by Sainsbury to tackle Covid 19 related issues and challenges
As during UK's imposed lockdown, Sainsbury's has seen a substantial boost in internet
purchases – a service the firm has been aggressively developing in over the last bunch of years –
with delivery and press enter both flourishing. "We've witnessed and nearly 50% rise in the
amount of available spots." Since the order quantities are larger than usual, we've nearly
quadrupled our internet sales as a percentage of our grocery market - it's gone from just around
8% to nearly 15% especially in recent weekends," Coupe said.
In the worst-case scenario, Sainsbury's will be forced to focus on only those factors that
directly assist the company's day-to-day operations. Businesses may face volume drops of 80
percent to 90 percent when physical storefronts are shuttered. Sainsbury that do not have a strong
understanding of the bare minimum activities required for sustainability risk incurring
unnecessary expenditures and losing market share to others who can function more leanly. This
must be considered with care. Reducing expenditures that are required for long-term survival
leads to the same result. Whenever occurs in the next years, the retailing industry is growing
increasingly complicated, necessitating quicker and better judgment throughout all areas (Kim
and Im, 2022).

Sainsbury's has to keep track of their money in the short and medium haul. Reducing
expenses now may assist with short-term survival, but it should not be performed at the price of
laying the groundwork for long-term success. This begins with a thorough awareness of all
existing and proposed activities, especially those aimed at securing the organization current
direction. Companies must now make difficult judgments concerning expenditures and
operations to determine which are truly necessary for the company's quick existence or long-term
development.
RESEARCH METHODOLOGY
To construct an excellent academic research process, use Saunders' research onion structure.
The research approach is a critical component of the thesis. Through a methodical approach, it
aids in the achievement of study aims and goals. It begins with identifying, gathering, analysis,
and interpretations of the data pertaining to the study issue. It assists investigators in determining
if a study idea is feasible. This has to do with how information was obtained and evaluated in
order to provide useful research results. The research team employed the Saunders research
onion methodology, which includes the following phases (Sharma, 2021).
Research philosophy: The evaluation of a value system, attitudes, and standards on the basis of
which evidence is collected and assessed is determined by the research philosophy. Positivism,
interpretivism, and realistic are the three main forms of research philosophies. The positivist
philosophy is employed in this study. Data acquired from investigation is analyzed in terms of
academic features in order to determine the topic's authenticity. The benefit of this philosophy is
that it allows for the collecting of crucial data and the management of generalized thought in
order to achieve objectives.
Research approach: Deductive and inductive research techniques are the two sorts of
methodological approaches. The current study employs a reductive strategy, which is a way of
gathering quantitative data for assessing if a theory is true or untrue. The main goal of this
strategy is to compare and contrast various ideas based on the study subject (Maples and et.al,
2021).
Research strategy: In this study, the researcher employed the questionnaire survey as a
methodological approach. For the capable of fulfilling the investigation, the perspectives of

answers obtained were taken into account. A literature review is used to learn about other writers'
perspectives and ideas on a certain study topic. This is due to the empirical aspect of the example
study technique, which collects data from real-life scenarios.
Research choice: It's used to recognize the nature of data that will be gathered in this research.
In this case, both qualitative and quantitative research is employed. Thematic analysis is carried
out using graphs and numerical information.
Time horizon: In the scope of this research, two months was determined to be the appropriate
amount of time to perform the study. Such potential to reveal determine the lateral and
longitudinal sectional components of the temporal horizon.
Data collection: Data gathering is a crucial aspect of the whole research endeavour, according to
the authors. It is feasible to arrive at a relevant judgment in a timely basis by gathering the
requisite lot of information. The two most important data gathering techniques are descriptive
and inferential. The data is gained from raw materials in the area of primary data collecting. The
main data is gathered straight from the sources in this case. It is the personal knowledge that the
investigator may utilise to collaborative project the project assignment. Secondary information is
gathered from a variety of sources, including blogs, magazines, and other publications. It is
feasible to obtain a large quantity of knowledge from secondary sources in a short period of time
and effort. Primary data will be acquired from the concerned personnel for this investigation.
Secondary data has also been acquired from legitimate sites, periodicals, journals, and other
sources (Lin, Fan, Shi and Fu, 2021).
Technique of sampling: Sampling is an important research direction. As during study, the
researcher took a sample from the total population. Probability and non-probability selection are
the two main strategies employed by the researcher in this case. In probability of being selected,
components are periodically added to the original sampling. The current analysis is focused on
probability sampling, which also will aid in obtaining accurate and reliable data. Such sampling
method allows the analyst to construct appropriate samples in order to meet the pre-determined
study objectives.
Data analysis: It is critical to properly analyses data to achieve acceptable study results. The
term "data analysis" means the process of properly evaluating knowledge / analysis. Data is

evaluated during data processing so that the investigator may make relevant conclusions in a
substantial manner. Through analyzing data, the investigator is able to make the correct actions
to ensure the completion of a project (Phakiti and et. al., 2018). In this case, the researchers will
employ the appropriate instruments in order to arrive at a relevant result. It is critical to use
proper data processing techniques and processes for this aim.
STATEMENT OF ETHICS
Ethical considerations: It is crucial to establish the based on the systematic during the study
project. Project work may be completed quickly if the principles are followed. In order to do this,
the investigator must adhere to the essential ethical guidelines. The information must be kept
private in this situation. In this case, the investigator must protect the details safe (Coombes, and
Ryder, 2019). To conduct the study task effectively, ethical rules such as secrecy, anonymity,
and others must be followed. The researcher can accomplish the study tasks in a timely way by
implementing appropriate research project guidelines.
TIMELINE
When conducting research, it is necessary to identify the timeline. The researcher may simply
accomplish the study assignment on time by choosing the timeframe. A suitable schedule must
be prepared in order to complete the tasks on time. In this case, the investigator must determine
the amount of time necessary to accomplish everything and every research-related task. The
researcher uses a gantt chart in this respect. It is a crucial project management tool. The gantt
chart is described below in relation to the current study project.