Tesco's Response to Covid-19: Sales Challenges and Business Analysis

This report examines the impact of the Covid-19 pandemic on Tesco, a major UK-based multinational retail company. It investigates the significant challenges faced by Tesco in its sales performance, primarily due to disruptions in supply chain management, logistics, and reduced customer traffic caused by lockdowns and social distancing measures. The report explores the financial losses incurred, the decline in sales, and the overall impact on the retail industry. The research employs a qualitative approach, using primary data collected from Tesco employees and secondary data from various sources. The research methodology includes research philosophy, design, approach, and sampling, providing a comprehensive overview of the research process. The report identifies key issues, such as the impact of lockdowns, changes in consumer behavior, and the need for adapting to new regulations. Finally, the report offers recommendations for Tesco to navigate these challenges and sustain its business operations during and after the pandemic, aiming to assist other retail companies in similar situations.

Professsional development
and practice

Table of Contents
INTRODUCTION.....................................................................................................................................2
BACKGROUND.......................................................................................................................................4
Aim....................................................................................................................................................4
Objective...........................................................................................................................................4
Research Questions...........................................................................................................................5
Significance.......................................................................................................................................5
RESEARCH METHODOLOGY.......................................................................................................5
RESEARCH FINDINGS...................................................................................................................7
Primary research data........................................................................................................................7
Critical evaluation of identified issues.............................................................................................15
RECOMMENDATIONS..........................................................................................................................18
CONCLUSION.......................................................................................................................................19
REFERENCES........................................................................................................................................21

INTRODUCTION
Covid-19 pandemic has become worldwide issue from past few months because it has
affected all business sectors i.e. travel and tourism, hospitality, pharmaceutical and retail
industry negatively. Generally, retail industry is highly impacted from Covid-19 as compared
others. the reason behind is that this sector is properly dependent on two chain management
i.e. logistic and supply chain management.Logistic chain helps retail companies to provide
products on time while supply chain management build platform between retail company and
customers. Due to Covid-19 retail companies unable to provide their products to the customer
on time. there are other MNC’s that uses digital media to provide home delivery services to
the customer but lockdown has reductant on this strategy negatively (Kharoubiand Dolle,
2020). Thus, retail sector is majorly impacted from this lockdown instead of other sectors.
There are various SME businesses that have shut down their retail stores due to lack of
product selling but MNC’s are struggling with this situation.Still vaccine is not available for
the treatment of this corona disease so all governments of different countries like UK have
formulated social distancing law and quarantine terms. Such laws and lockdown have
brought huge financial loss in the retail. This Covid-19 pandemic is not only affected people
physically but also mentally for example most of the employees who employ in MNC’s or
small-scale companies avoids to go on work to keep thing like they can be infected as
resulted that leads poor productivity of staff in the workplace. Thus, it will be valid to say
that global pandemic Covid-19 has brought heavily financial loss in retail sector that directly
affect GDP rate of multiple countries. In this research assignment will give brief information
over challenges and issues that are havingand will have faced by Tesco in the retail industry
due to pandemic Covid-19.
This research will assist all retail companies in order to deal with current situations
which are facing by them. It will encompass all actual fact related to retail sector that arises
due to this pandemic (Authority, 2018). This research project will indicate that how retail
companies have faced heavy financial loss and will evaluate all challenges that can impact
post covid-19 as well. There is a main reason to choose this topic for the research is that there
are most of retail companies like Tesco still struggling to sustain in market while trying to
comply with all regulation which have formulated by UK’s government. In this research will
pick all authentic resources associated with research topic so that optimum result can be
received. It will highlight probable solutions of identified challenges which will supports

retail sector to deal with this pandemic effectively. Overall, this research assignment will act
as solution for the retail sector in current time and future perspective as well.
Tesco is a British multinational company that is headquartered in England, UK. it has
wide product line and services and offers them to the customer through it’s subsidiaries
which is located into multiple countries across the world. It has faced heavy financial loss due
to Covid-19 in past few months.
BACKGROUND
There have been a lot of changes in the growth factor of the retailing industry due to
the outbreak of pandemic and the company already had made so many changes because of
the Brexit to make the sales increase. Retailing industry contributes to the GDP of the country
and due to social distancing and lockdowns the customers coming in the organization are
limited. There are a lot of investments which the retailing organizations have put in the
company to be able to operate effectively after Brexit and due to. The small businesses in the
market are shutting down because there are no customers and the sales have reduced to such
extent that the company cannot function further. The lockdowns and social distancing is a lot
of problems which the company is facing but slowly when the market picks up again there
are a lot of strict actions which will have to be taken. There has to be a research which Tesco
will have to do of the market so that the further decisions can be taken by the organization
effectively and be able to increase the sales again in the market.
Aim
“The aim is to analyse and evaluate the negative force on the sales in the retailing
industry of the country after the Covid-19. The case study is on Tesco organization.”
Objective
 Covid-19 has created a lot of impact on the sales which is going to be evaluated for
the retailing industry.
 Identify the impact of this situation on the sales of Tesco organization in specific.

 There are a lot of challenges which the organization has faced for the sales to
decrease.
 Recommendations on the bases of the challenges which the company has had to face.
Research Questions
 Affect of Covid-19 on the retailing industry of United Kingdom?
 Impact on the sales of Tesco because of Covid-19?
 Due to declining sales what are the challenges which Tesco has had to face?
Significance
There is a lot of influence of Covid-19 in the retailing sector which is going to be
discussed in the further report and this is going to continue like this. There are a lot of
businesses which have had to close down forever due to this factor as they were not being
able to maintain the employees and the sales was not there. The research is about the
challenges and recommendations for the retailing businesses in the market so that there is
going to be a better functioning in the further (Van der Sluis, Burden and Huet, 2017). People
will have to live with pandemic situation for long which does not stop businesses to stop
functioning therefore there are important decisions which will have to be taken. The research
is recommended not just by scholars but other report and researchers as well so that there is a
better understanding of the current situation for Tesco and better decisions can be taken for
the future as well by the organization.
RESEARCH METHODOLOGY
Research Type: Research is the process that involves searching new ideas, information and
thoughts which helps to influence the already known facts over the topic of research.
Research are of two types qualitative and quantitative. Qualitative type of research comprises
with information and facts in qualitative form (Rodrigues and Rosa, 2019). Theoretical form
of information is a part of qualitative type of research. Quantitative type of research involves
information related to mathematical facts and figures. Quantitative type of research comprises
with only relevant facts and figures related to the research topic. This report is based on the
qualitative type of research. This will allow researcher to achieve the overall objectives
behind the research.

Research Philosophy: Research philosophy is defined as the concepts and theories behind
the research. Research philosophies are of two types i.e. positivism and interpretive.
Positivism philosophy aims to gather and collect actual data and information which is already
available over internet and other information sources (Clark and et.al., 2017). While
interpretive philosophy is all about interpretations. In this philosophy all information are
analysed on the basis of interpretations of researcher. Positivism philosophy is used in this
research.
Research Design: Research design is a design of the research. There are total three types of
research designs i.e. inductive, deductive and adductive. Inductive research design starts with
a set of empirical observation, seeking patterns in those observations and then theorizing such
patterns. Deductive research design starts with the theory than it switches on developing
hypotheses from the theories available over the topic ad than collecting and analysing all the
information. Abductive research mostly based on the observation. This research is based on
the abductive research design.
Research Approach: Research approach is off three types exploratory, descriptive and
explanatory. Descriptive research approach is about to understand attitude of individuals
while explanatory approach is proposed to determine factors which impacts on business
environment directly and indirectly (Huang, Fang and Chen, 2017). Explanatory approach is
designed to achieve logical answering over given questions. Explanatory research approach is
used for doing this research. Questionnaire method is used in completing this research.
Research Sampling: There are two methods of data collection such as probably and non-
probably method. Probability sampling technique involves random sampling as it does not
approach all sources to gather information for the research. Non probability sampling
approaches all possible sources to gather information for the research (Cuervo‐Cazurra and
et.al., 2017). This research has used probability sampling method to gain the complete
advantages over the research. To conduct the primary research 30 employees at Tesco
Company took participated in the research.
Data Collection: Data collection is all about collecting necessary information for completing
the research. Data are collected with two method primary method of data collection and the
other one is secondary method of data collection. Primary method of data collection is all
about collecting information by putting up the individual efforts of the individual in gathering
all such information required for completing the research (Ratnam, 2019). Secondary method

involves using the already used information for achieving the overall objectives behind the
research. This research is based on the both primary and secondary data collection method as
it provide all required information and also the technique is time saving technique for
collecting information. To collect the data employees were asked questions. 30 Employees of
Tesco Company took participated in the survey for sharing the knowledge and information.
Data Analysis: Data analysis is all about analysing the information collected through data
collection method. This is a simple technique that involves analysing the entire information
and on the basis of the analysis conclusion is drafted over the research topic. Data analysis
plays an important role in completing the research. Data analysis is conducted with two
methods thematic analysis and content analysis (Lynch and Mannion, 2016). Content analysis
is about to assess the content available over the research topic. Thematic analysis used
sources and statistics to achieve the research objectives. Thematic analysis method is used in
this research.
Ethical Consideration: Ethical consideration is all about maintaining the authenticity of the
research. This involve following right methods for collecting the required information for the
research. Different principles are followed for the ethical consideration in this research. Such
principles are identified as minimising the risk of harm in this researcher has not created any
offense that can harm someone (Whicher, Philbin and Aronson, 2018). Obtaining information
consent has also taken care which involves that right sources for information has used in this
research. Protection of anonymity and confidentiality is used in this research. This involves
maintaining the proper confidentiality in respect to all the employees of Tesco Company
which has provided information for this research and also about the other sources of
information. Principle of avoidance of descriptive practices has also followed which involved
keeping the information precise and limited. Ethical principle providing right to withdraw has
also kept in the research. All the principles are followed in completing the entire research.
RESEARCH FINDINGS
Primary research data
The primary research has been conducted in accordance with the aim and objectives
behind the research. Using the thematic data analysis technique, the collected data can be
presented in following manner.
Theme 1: Respondent agreed that Tesco Company have been severely affected.

How has Tesco Company been affected by the corona virus
pandemic?
Frequency
Extremely affected 25
Affected 5
Neutral 0
Unaffected 0
Completely unaffected 0
Total 30
83%
17%
1
2
3
4
5
Interpretation: The above mentioned chart shown that 25 out of the 30 respondents stated
that they were severely affected from the pandemic. The company has been affected at an
extreme level due to the Covid- 19 pandemic and the decline in their business was significant.
This is evident that lockdown could suffer the entire business environment (Bairagi and
Munot, 2019). Guidance issued by the world health organisation has also clearly shown that
only the needed essential must buy by all the people in UK. The reaming 5 employees

involved in the research has also projected that company got affected from the pandemic. It
can be interpreted that company could suffer from the pandemic situation in from of lesser
sales turnover.
Theme 2: Acceptance of customers about the products.
Is the customers find the products safe at stores? Frequency
Yes 15
No 15
Total 30
50%50%
1
2
Interpretation: The above mentioned chart project that almost half of the customers enters
the store of Tesco Company do not find the product safe. 15 out of 30 employees involved in
the survey do belief that only half customer’s feels safe buying product from the stores at
Tesco. This clearly shown about the fear customers carry while buying products in this
pandemic situation. It is interpreted that due to the fear in the mind of customers company’s
business has been terribly affected from the pandemic. Rest 15 employees do not feel that
customer do not feel safe due to the deadliness of the virus. It easily spread in human being
which has clearly shown in the research.

Theme 3: The arrival frequency of visitors in stores of Tesco.
What is the arrival frequency of the customers in the stores Frequency
Regular 0
Once in a while 20
Rarely 5
Customers are no longer visiting 5
Total 30
1
2
3
4
0% 10% 20% 30% 40% 50% 60% 70%
0%
67%
17%
17%
Series1
Interpretation: The above mentioned charts project that the frequency of customers visiting
stores of Tesco Company has been stopped. 20 employees specified that customers are
visiting stores once in a while to buy all the products they need. This project about the fear
customers have in the mind by infecting with the virus (Paul, 2017). Most of the times
customers buy products and groceries in bulk so they do not need to visit the stores
continuously. As per the opinions stated by 5 employees customers are not remaining visiting
the stores of company after the pandemic. 5 employees clearly shared that customers are not
interested in coming at the stores. Employees specify that some of the regular customers are
not visiting stores of Tesco after the pandemic situation. It can be interpreted that due to the

pandemic the business has seen a huge damage. Customers feels fear after visiting the stores
even the proper amenities are offering like social distancing at stores, sanitizers and other
facilities are serving to customers at all stores of company. It can be specify that the
pandemic has hit the business very badly and it will take some time to get back the business
at its normal and regular pace.
Theme 4: Majority of the employees agreed that they are facing a variety of challenges.
What according to you is the major challenge post Covid-
19 Tesco Company is facing?
Frequency
Selling product 5
Earn profits 8
Product supply 7
All of the above 10
Total 30
1
2
3
4
0% 5% 10% 15% 20% 25% 30% 35%
17%
27%
23%
33%
Series1
Interpretation: 5 out of 30 employees participated in survey specified that company is
facing trouble in selling products. Employee does believe that the Tesco Company is facing
many challenges post lockdown due to COVID 19 pandemic. Some employee’s beliefs that
selling products is a big challenge for the company. 8 employees have specified that earning

profits is a huge challenge company is facing at this point in time. 7 employees participated
in survey said that supply of products is another key challenge company is facing which also
mentioned by many of the employees. 33 % of employees specify that all the challenges like
selling products, earning profits and product supply are all key challenges business is facing
post lockdown period.
Theme 5: Online selling is more convenient after COVID 19 Pandemic.
Do you feel online trade is more convenient post COVID
19?
Frequency
Very convenient 20
Convenient 5
Not effective 5
Total 30
67%
17%
17%
1
2
3
Interpretation: The above chart project that online trading is more convenient post
pandemic. 20 employees participated in the survey has voted for online trade as it is
convenient to buy products in this situation. Almost majority of customers prefers ordering
online which indicate that company must focus over e-commerce trade of its products.