Research Report: Declining Sales in UK Supermarket Tesco Branches

This research project investigates the declining sales of Tesco supermarkets in the UK, with a specific focus on the Woolwich area. The study explores various factors influencing sales, including market saturation, recession, competition, and the rise of online shopping. Employing a qualitative approach, the researcher utilizes a descriptive research design and interpretivism research philosophy, collecting data through questionnaires and secondary sources like books and online journals. The research analyzes data from a sample of 25 Tesco employees using thematic analysis. The findings reveal the impact of market trends on Tesco's sales, strategic decisions made in response to declining sales, and recommendations for improvement. The report highlights the challenges faced by traditional retail sectors and the need for strategic adaptations to maintain market share and profitability.

Research Project
1

ABSTRACT
The success of a retail organization is greatly influenced by its ability to meet demand of
consumers with an appropriate manner. This approach has direct impact on the sales and market
share of company. Furthermore, the management of retail organization has to consider several
elements of external market for attainment of sales targets of business entity. The present is
Examining Declining Sales in the UK Super Markets Retailers: Focus on Tesco Branches within
Woolwich Area of [GREENWISH Borough of London]. The topic of present research provides
understanding about different factors that influence sales of supermarket in particular location.
For completion of different aspects of investigation, researcher has applied an appropriate
research methodology.
As per the qualitative nature of investigation, researcher has considered different tools of
research methodology by using qualitative method. Descriptive research design and
interpretivision research philosophy has been selected for handling of various operations of
research. Both primary and secondary sources have been applied by researcher for collection of
data through questionnaire, books, online journals etc. As per random sampling approach,
researcher has taken a sample of 25 employees of Tesco and evaluation of data is carried out by
using thematic analysis with the help of graphs etc. As per the objectives of investigation,
researcher has found that traditional retail sector in UK is facing several issues in the form of
market saturation, recession and high competition etc. It directly influences negative impact on
sales of different retail firm. The study further addressed that emergence of new retail chains
along with growth in online shopping sites has played vital role in sales reduction of traditional
supermarkets. By focusing the objectives of investigation, researcher has examined that a retail
firm takes wide range of strategic decisions such as attractive offers, changing of staff and
closing of store as a consequence of sales reduction.
2

TABLE OF CONTENTS
RESEARCH PROPOSAL ..............................................................................................................4
1.1 Outlining the research specification.......................................................................................4
1.2 Identification of the factors that contribute to the process of research project selection and
factors that motivated the process of topic selection for research...............................................5
1.3 Literature review....................................................................................................................5
1.4 Research Project specification...............................................................................................6
1.5 Appropriate plan to handle different elements of investigation.............................................7
RESEARCH REPORT .................................................................................................................10
Research Topic...........................................................................................................................10
Introduction................................................................................................................................10
Rationale of the study................................................................................................................10
Research aim..............................................................................................................................10
Research objectives....................................................................................................................11
Research questions.....................................................................................................................11
Literature review........................................................................................................................11
Research methodology...............................................................................................................14
Data analysis and discussion......................................................................................................15
Conclusion and Recommendation.............................................................................................22
Recommendation for the area of future research.......................................................................23
REFERENCES..............................................................................................................................24
APPENDIX ...................................................................................................................................27
3

RESEARCH PROPOSAL
1.1 Outlining the research specification
Retail industry in UK has faced significant up and downs due to change in market
conditions along with economy growth of country. These elements are having direct impact on
sales, spending and market competition. Therefore, every business organization is required to
consider several elements for maintaining efficient position in the market in the from market
share and sales of company (Burrows, 2012). The emergence of new retail firm along with
growth of online retail market has created negative impact on the sales and performance of retail
firms and conventional supermarkets. In the context, the present research work will be carried
out for Examining Declining Sales in the UK Super Markets Retailers: Focus on Tesco Branches
within Woolwich Area of [GREENWISH Borough of London].
In this regard, the present investigation will be focused to address various factors that can
be considered as major causes of sales decline among different branches of Tesco within
Woolwich area. Therefore, this investigation is going to examine current market trends that are
identified in retail sector in UK and their impact on sales of different companies. Furthermore,
the present research work will evaluate the impact of sales reduction in stores of particular on
Tesco along with its strategic decisions. In this context, aim and objectives that will be followed
by researcher for collection of wide range of information are mentioned below:
Aim of the study
“Examining Declining Sales In The Uk Super Markets Retailers: Focus On Tesco Branches
Within Woolwich Area Of [GREENWISH Borough Of London].”
Objectives of research
 To examine current trends of retail industry in UK.
 To assess the reasons of sales reduction in the supermarkets of Tesco within Woolwich
Area.
 To identify impacts of decline in sales on the strategic decisions of the Tesco
 To recommend improvement strategies to increase sales of Tesco' supermarkets.
Research Questions
1. What are the current trends of retail industry in UK?
4

2. What are the important reasons of sales reduction in the super markets of Tesco within
Woolwich Area?
3. How does decline in sales of supermarkets within Woolwich Area influence business
decisions of Tesco?
1.2 Identification of the factors that contribute to the process of research project selection and
factors that motivated the process of topic selection for research
The present researcher is going to analysis different elements that have been played
important role in reduction of sales of Tesco’s retail outlets and supermarkets situated in
Woolwich Area. With the help of this research, investigator will be able to address the current
market trends of UK retail sector through which researcher can understand the impact on market
fluctuations on sales and performance of a business entity (Dougherty and Gray, 2006). The
present investigation will assess various causes of sales reduction in particular area through
which investigator will be able to address certain market conditions in which management of
retail organization should have to develop various strategies to increase sales of supermarkets in
particular along with assessment of alternative strategic decisions in order to avoid losses. This
study will provide information related to different business strategies of retail organization
through an organization is able to handle adverse market conditions. This element of research
makes investigation more interesting in the point of view of researcher.
1.3 Literature review
The research of Fransoo, Waefler and Wilson (2010) has found that there have been
significant fluctuations identified in retail industry. It has created huge impact on the sales of
retail firms in UK. Author further has addressed several elements such as change in lifestyle of
people, economy conditions of UK, emergence of new companies, online shopping etc. In this
context, it has been evaluated after recession several new companies have started their operations
in retail sector and continuous up- down in economic trends have made people more
conservative while performing any kinds of shopping (Pepe, 2015). All these factors have
created adverse impact on the sales of traditional big retail firms such as Tesco, Walmart and
Sainsbury. Ganesan (2015) has evaluated that change in market conditions is considered as most
important element that influences needs and desires of consumers that have direct impact on
sales value of particular supermarket in an area.
5

The study of Hansen and Grunow (2015) has addressed that emergence of online retail
market has created huge impact on sales of domestic super markets and retail stores. This is
because the online retail firms are offering the more discounts and attractive offers along with
personalized door step services. In addition to that wide product range and easy return policies
have played important role in growth of online retail firms. This thing has created direct impact
on the sales of supermarkets and retail stores. In this context, Wallace and Stahl (2010) have
evaluated that emergence of various small and external firms in retail sector have influenced
profit and market share of traditional firms in negative manner (Ingram, 2012). This is because
new firms are offering new product range with attractive and creative offers that influence
regular consumers of other firm. Therefore, increase in market competition has been considered
as an important element of decline in sales of company.
The research of Allwood and et.al. (2008) has found that reduction in sales of
supermarkets is having direct impact on the overall performance of the company. In order to
handle this situation, the management of retail organization takes wide range of strategic
decision such as new offers, new product range, discount offers, creative marketing etc. All these
factors are playing important role to increase the sales of supermarket. But, if management is
failed to handle this situation and organization is facing continuous losses due to downfall in
sales. In this situation, company takes decision to shut the supermarkets and retail outlet for
avoiding the losses. In this context, the investigation of Yu and Ramanathan (2008) has
addressed that shutting of retail brand is the final decision of the company when all the measures
to improve performance and sales have been failed. Furthermore, it has been addressed that the
business decision related to shutting of retail outlet is very crucial tasks for company for
handling because organization faces several losses.
1.4 Research Project specification
As per the nature of investigation, there are two type of research method are available for
researcher such as qualitative and quantitative through which investigator will be able to manage
several aspects of investigation. As per the nature of investigation, application of different
aspects of study will be carried out as per the principles of qualitative research method (Merriam,
2009). This is because the present research work will be carried out to assess various causes that
influence sales reduction in particular supermarket. As per the motive of present investigation,
6

descriptive research design will be applied by researcher for collection of wide range data
(Johnson and Clark, 2006). On the other hand, exploratory research design will be found useful
in collection and evaluation statistical information as per the research requirements.
Interpretivism and positivism research philosophy could be selected by researcher in
order to manage distinct kinds of research operations. In the context of present study, researcher
will uses interpretivision research philosophy through which researcher will be able to assess
reasons and purpose behind any research outcomes (Johnson and Christensen, 2010). Data
collection is termed as a most important section of research methodology. The reliability of
outcomes and finding of research is mainly associated with appropriateness of different sources
of data. By focusing research targets, researcher will consider both primary and secondary
sources to collect wide range of information associated with different aspects of retail sector that
decrease the sales of supermarket of Tesco in particular location. Thematic analysis will carry
out to examine the information that will collect from primary sources. For taking an appropriate
sample for collection of primary data, researcher has Probabilistic and Non-Probabilistic tactics
that can be used to assess best sample (Garner Kawulich and Wagner, 2012). In the present
research, probabilistic sampling will suitable when researcher is required to carry out the random
selection of people. In the present study, researcher will take responses from employees of Tesco
who are appointed in supermarkets of Woolwich. In the present, a sample of 25 employees will
be appropriate.
1.5 Appropriate plan to handle different elements of investigation
For generation of appropriate research outcomes, investigator will require to follow an
appropriate research plan through which wide range of activities will be scheduled by researcher
with an appropriate manner. On the basis of a systematic plan, researcher can attain all criteria of
investigation. This approach would assist researcher to generate feasible and research outcomes.
Different stages that will be followed by researcher in completion of various tasks are presented
with the help of below mentioned Gantt chart:
Activity Week1 Week2 Week3 Week4 Week5 Week6 Week7 Week8 Week9
Developing the
Research Proposal
7

Evaluating various
literature
Finalizing the aims and
objectives
Drafting literature
review with an
appropriate information
Collection of
secondary data
Analyze secondary data
Developing research
approach
Creating research
methodology
Development of
questionnaire
Arranging the interview
Conduct the interview
Accumulate the data
Draft Findings
Analysis and evaluating
data
Complete remaining
chapters
8

Submit it to tutor and
await for feedback
RESEARCH REPORT
Research Topic
“Examining Declining Sales In The Uk Super Markets Retailers: Focus On Tesco Branches
Within Woolwich Area Of [GREENWISH Borough Of London].”
Introduction
In the contemporary retail sector, there has been significant fluctuations addressed among
sales, income along with the market share of different companies due to several changes are
identified in consumer behaviour, emergence of new firms along with application of new
business strategies to gain appropriate market share etc. These elements are having direct impact
on sales, spending of people and market share of companies (Mena, Adenso-Diaz and Yurt,
2011). Therefore, every business organization is required to consider several elements for
maintaining efficient position in the market in the from market share and sales of company. In
this context, the emergence of new retail firm along with growth of online retail market has
directly influenced efficiency of existing firms as well as their market position. Therefore, the
present study is carried out to examine several factors that play important role in sales reduction
of retail firms.
Rationale of the study
The present study is organized to examine reduction in sales of retail firm or
supermarkets in UK. In this regard, Tesco has been taken for investigation because company is
facing issues associated with reduction sales in the supermarkets of Woolwich Area. Therefore,
the present investigation is tired to determine different factors that influence sales reduction
along with their consequences on strategic business decision (Wrigley and Lowe, 2014). In this
context, there have been several studies carried out to assess role on satisfaction of consumers in
sales of company along with impact of market conditions on the retail business. But, the present
research work is presenting some distinct in the form of causes of sales reduction in
supermarkets associated with particular area and
9

Research aim
The primary research work is carrying out for Examining Declining Sales in the UK
Super Markets Retailers: Focus on Tesco Branches within Woolwich Area of [GREENWISH
Borough of London].
Research objectives
The objectives of current investigation that assists researcher in completion of various
tasks and activities with an appropriate manner are mentioned below:
 To examine current trends of retail industry in UK.
 To assess the reasons of sales reduction in the supermarkets of Tesco within Woolwich
Area.
 To identify impacts of decline in sales on the strategic decisions of the Tesco
 To recommend improvement strategies to increase sales of Tesco' supermarkets.
Research questions
The research questions provide guidance to researcher for handling of various strategies
to generate valid and reliable outcomes. Some important elements are discussed below:
1. What are the current trends of retail industry in UK?
2. What are the important reasons of sales reduction in the super markets of Tesco within
Woolwich Area?
3. How does decline in sales of supermarkets within Woolwich Area influence business
decisions of Tesco?
Literature review
Current trends of retail industry in UK
The research of Haskel and Sadun (2012) has addressed that there has been significant
fluctuations identified in retail industry. It has created huge impact on the sales of retail firms in
UK. Author further has addressed several elements such as change in lifestyle of people,
economy conditions of UK, emergence of new companies, online shopping etc. As per the report
of RBS, it has been analyzed that consumer spending has fallen significantly during the financial
crisis. Furthermore, slow recovery in individuals and household spending is addressed due to
high employment; weak wage growth and relatively high inflation rate (Smith, 2010). It also
creates negative impact on the sales of retail companies. It has been analyzed that consumer
10

spending is going to increased by 1.5% in this years as compared to 1.2% in 2012. This report
has determined that mix of stores has been altered with the value shops up by 12.4%,
independence convenience outlets up by 17% and 5% reduction is identified in chain stores
(Retail 2023: Trends affecting retail strategy over the next decade, 2013). In this context, it has
been evaluated after recession several new companies have started their operations in retail
sector and continuous up- down in economic trends have made people more conservative while
performing any kinds of shopping.
The study of Gwynne (2008) has found that UK economy has recorded slight
improvement in 2014 but retailers are required to work hard to convince shoppers to part with
their money. All these factors have created adverse impact on the sales of traditional big retail
firms such as Tesco, Walmart and Sainsbury. This thing has created direct impact on the sales of
supermarkets and retail stores. Therefore, increase in market competition has been considered as
an important element of decline in sales of company (Fernie, 2009). As per the analysis of
financial statements of Tesco, it has been addressed that the overall revenue of Tesco is reduced
to 62,284 GBP in 2015 as compared to 63,557 GBP in 2014 (Tesco PLC ADR, 2015). In addition
to that business entity is also facing losses in 2015 due to high expenses of company. In similar
way, the revenue of Sainsbury is also going down to 23,775 GBP in 2015 as compared to 23,949
GBP in 2014. Apart from that gross margin of business entity is also reduced to 5.1% in
comparison of 5.8% of 2015 (Sainsbury (J) PLC, 2015). On the basis of these figures, it can be
stated retail sector is facing downturn in income and overall sales of different companies due to
change in perception of consumers along with adverse market conditions. England and John
England (2012) have evaluated that change in market conditions is considered as most important
element that influences needs and desires of consumers that have direct impact on sales value of
particular supermarket in an area.
Reasons of sales reduction in the supermarkets
The investigation of Ambler-Edwards and et.al. (2009) has evaluated that emergence of
various small and external firms in retail sector have influenced profit and market share of
traditional firms in negative manner. This is because new firms are offering new product range
with attractive and creative offers that influence regular consumers of other firm. In this regard,
author further argued that price wars and falling cost of food commodities have played important
11

role in declining of the sales of retail firms and supermarkets. The study of Fernie, Sparks and
McKinnon (2010) has addressed that emergence of online retail market has created huge impact
on sales of domestic super markets and retail stores. This is because the online retail firms are
offering the more discounts and attractive offers along with personalized door step services. In
addition to that wide product range and easy return policies have played important role in growth
of online retail firms. The research of Yu, Ramanathan and Nath (2014) has determined that
emergence of new budget chains has promoted battle between top firms like Tesco, Sainsbury
etc. In addition to that this thing also sparked the price wars among companies to sustain market
share. All these elements have been important role in reduction sales and income retail firms. As
per the contemporary of retail market conditions of UK, Burrows (2012) has examined the
budget chains like Aldi and Lidi has gained significant growth in market conditions in different
supermarkets that has led negative impact on sales and market share of other firms like Tesco
and Sainsbury.
Impacts of decline in sales on the strategic decisions of retail firms
For handling adverse market conditions, the management of retail firm has implemented
several changes in business operations and strategic decisions to improve position of company.
The research of Dougherty and Gray (2006) has found that reduction in sales of supermarkets is
having direct impact on the overall performance of the company. In order to handle this
situation, the management of retail organization takes wide range of strategic decision such as
new offers, new product range, discount offers, creative marketing etc. These tools have played
important role to increase the sales of supermarket (Fransoo, Waefler and Wilson, 2010). On the
other hand, if management is failed to handle this situation and organization is facing continuous
losses due to downfall in sales. In this situation, company takes decision to shut the supermarkets
and retail outlet for avoiding the losses. For example: Tesco has closed its 43 stores in 2015 in
order to cut the cost (Tesco names 43 UK store closures, 2015). On the basis of this information,
it can be stated that the decline in sales creates adverse impact on business expansion decision
and influences management to shut such branches which are suffering from losses. In this
context, the investigation of Pepe (2015) has addressed that shutting of retail brand is the final
decision of the company when all the measures to improve performance and sales have been
failed. Furthermore, it has been addressed that the business decision related to shutting of retail
12

outlet is very crucial tasks for company for handling because organization faces several losses.
Mena, Adenso-Diaz and Yurt (2011) has evaluated that reduction in sales also influences
company to change staff of particular retail store with new employees or shifting of brand in new
location along with price reduction. All these decisions have been played most crucial role for
reducing the value of losses.
Research methodology
It is considered as most important section of investigation in which researcher examines
all tools that are playing important role for generation of appropriate and valid outcomes. As per
the objectives of present investigation, several elements for research framework are elaborated
below: Research method: By focusing the nature of investigation, there are two type of research
method are available for researcher such as qualitative and quantitative through which
investigator can handle different elements of investigation (Saunders, Lyon and
Möllering, 2012). For evaluation of theoretical information, qualitative research method
is being applied by investigator that helps researcher in collection of wide range of data
associated with various causes that influence sales reduction in particular supermarket. Research design: As per the objectives of present investigation, descriptive research
design has been selected by researcher for collection of wide range data to generate
appropriate research outcomes and valid conclusion (Creswell, 2013). This approach has
been found very effective when is carried out as per the qualitative data. On the other
hand, exploratory research design has played important role for collection and evaluation
statistical information as per the research requirements. Therefore, this design is not
suitable in current research. Research Philosophy: Interpretivism and positivism research philosophy are present for
researcher in order to manage distinct kinds of research operations. In the context of
present study, researcher is applying the interpretivision research philosophy through
which is playing important role for assessment of the reasons and purpose behind any
research outcomes such as causes of sales decline (Merriam, 2009). In the contrary,
positivism philosophy is not feasible of current research work. This is because this
13

philosophy has been found very appropriate for carrying out the systematic study as per
evidence such as statistical data. Data collection: Data collection is identified as most important section of research
methodology for collection of valid and reliable outcomes. The reliability of outcomes
and finding of research is mainly associated with appropriateness of different sources of
data. By focusing research targets, researcher has applied both primary and secondary
sources for gathering of wide range of information related to different aspects of retail
sector that have decreased the sales of supermarket of Tesco in particular location
(Jackson, 2008). For collection of primary data, questionnaire is used to assess views of
employees. Books, past studies, online journals have been taken for collection of
secondary data. Sampling: For collection of primary data, researcher has Probabilistic and Non-
Probabilistic tactics that can be used to assess best sample. In the context of present
research, probabilistic sampling has been applied by the researcher to carry out the
random selection of people (Chui, 2007). In the present study, researcher is taking
responses from employees of Tesco who are appointed in supermarkets of Woolwich. In
the present, a sample of 25 employees is appropriate to draw an appropriate conclusion. Data analysis: To examine the data that have been acquired from primary sources,
investigator has considered thematic analysis through which researcher is able examine
findings and views of employees with the help of graphs, chart and diagram.
 Access to data and ethical issues: In the present investigation, researcher has considered
fair and ethical sources of information to maintain validity and reliability of information
(Singh, 2010). Researcher has applied appropriate tools for safety and security of
personal information of employees of Tesco.
Data analysis and discussion
In this section, researcher has tried to analysis wide range of data that have been assessed
from primary sources to draw an appropriate conclusion. For the present study, researcher has
taken a sample of 25 employees. Therefore, investigator has distributed 25 questionnaires and
assesses responses from all participants that indicates 100% response rate.
Thematic analysis
14

Theme 1: Age group
The above chart is describing the profile of employees by addressing their age group. As
per the above chart, it has addressed that maximum 9 out of 25 participants are associated with
age group of 26-30 years. After those employees who are having age between 21-25 is second
highest. On the basis of this assessment, it has addressed that maximum number of employees in
Tesco are having age between 20 to 30 that reflects that workers have efficient knowledge about
the present market conditions. This is because young age people always active on different
channels of communication such social media, internet and etc. that results increment in personal
and professional understanding of different kinds of product and services that have been
promoted other companies on social media.
Theme 2: Condition of retail industry in not good
15
16 - 20 years
21 - 25 years
26 - 30 years
31 - 35 years
Above 35 years
0
1
2
3
4
5
6
7
8
9
10
Age
Column B

As per the above chart, it has evaluated that 11 out 25 participants have agreed and 5 out
of 25 employees have strongly agreed that the market condition of UK retail industry is not good
due to market saturation and emergence of various companies. This is because most of
employees believe that growth rate of sales of retail companies is continuously reducing and
companies are facing tough competition with various new companies that results significant
price wars along with reduction in profit margin. In this context, 5 employees have not provided
any response in this regard. Therefore, it can be said negative market conditions are also creating
negative impact on sales and performance of retail firms such as Tesco and Sainsbury.
Theme 3: Most important factor that can be considered as important cause of sales
reduction in the supermarkets of Tesco within Woolwich Area
16
Strongly agree
Agree
Neutral
Disagree
Strongly Disagree
0 2 4 6 8 10 12
Do you agree that, condition of retail industry is not good
Column B

The above pie chart reflects the most important factors and reason of sales reduction in
different supermarkets of Tesco working Woolwich area. In the context, highest 32% of total
respondents have considered the price war as a most important cause of sales fall. Apart from
that emergence of new companies has considered as an important cause fall by 26% of
participants. In addition to that 24% of employees have considered change in interest of
consumers and remaining 16% of participants have selected reduction in prices of food products
as important reasons for reduction in sales of Tesco's supermarkets.
Theme 4: Financial crisis have influenced negative impact on the sales of traditional
supermarkets of Tesco in negative way
17
28%
16%
24%
32%
What is the most important factor that can be considered as
important cause of sales reduction in the supermarkets of
Tesco within Woolwich Area
Emergence of new companies
Reduction in the price of food
products
Change in interest of
consumers
Price wars

The above chart is determining the perception of employees about role of financial crisis
in decline in sales of supermarkets and retail firms. In this regard, maximum 44% of participants
have agreed and 24% of employees have strongly agreed that financial crisis have led negative
impact on economic growth, income of people etc. These elements create direct impact on sales
of firm and purchasing power of employees. In this context, the 16% of employees have not
provided any response.
Theme 5: Online shopping sites are attracting consumers from traditional purchasing
process through supermarkets and retail outlets of Tesco
18
24%
44%
16%
12%
4%
Do you think that financial crisis have influenced negative
impact on the sales of traditional supermarkets of Tesco in
negative way
Strongly agree
Agree
Neutral
Disagree
Strongly Disagree

By focusing above mentioned diagram, it can be stated online shopping sites are creating
significant impact on the purchasing pattern of consumers. In this regard, it has been addressed
that 8 out 25 employees have selected high discount and remaining of 8 participants have
preferred door step services as premier elements of online shopping process that have influenced
consumers to purchase product from online shopping stores at home rather than retail outlets and
supermarkets. In addition to that 5 out 25 workers of Tesco have considered attractive offers of
online retail companies as a most important factor that has led negative impact on sales volume
of domestic stores and outlets. All these elements are indicating significant growth in online
business and downfall in sales of traditional supermarkets.
Theme 6: Decline in sales of supermarkets influences strategic decisions of firm
19
High discount
Attractive offers
Easy return policies
Door step services
0 1 2 3 4 5 6 7 8
How online shopping sites are attracting consumers from
traditional purchasing process through super markets and
retail outlets of Tesco
Column B

The above chart indicates the views of employees about the impact on sales fall in
strategic decisions of consumers. In this context, 72% of employees have accepted that
management of Tesco have to restructure management decisions along with business issues in
order to resolve the organizational issue associated with decline in sales of supermarkets.
Therefore, it can be stated that reduction in sales of firm is having direct impact on management
policies of Tesco.
Theme 7: Strategic decision are taken by management of Tesco to avoid losses due to
reduction in sales of supermarket in particular area
20
72%
28%
Do you think that decline in sales of supermarkets
influences strategic decisions of firm
Yes
No

With reference to above chart, it has been addressed that 8 out of 25 respondents have
considered the use of creative services and 7 out of 25 participants have selected the offering of
attractive discounts as important strategic decisions of company in order to reduce losses from
sales reduction. Furthermore, 6 out of 25 employees have considered the shutting down the
branch of company and remaining 4 workers have preferred change in staff of supermarket as
important strategic measures to control loss from sales fall.
Conclusion and Recommendation
On the basis of above assessment, it can be concluded that Tesco is facing several issues
due to reduction in sales of supermarkets. In the context of present investigation, further
evaluation has found that the application of qualitative research method has played important
role in evaluation of perception of primary respondents or employees of Tesco about different
causes of sales reduction in retail organization. For the present study, researcher has adopted
probabilistic sampling approach that assists investigator in selection of best sample to generate
appropriate data. For the present study, a sample of 25 employees who are working in Tesco has
been taken through which researcher can draw appropriate research outcomes. In addition to that
researcher has ensured the validity and reliability of research outcomes by considering fair and
ethical sources of information in order to generate appropriate research outcomes. In this regard,
21
Offering attractive discounts
Creative services
Changing staff of stores
Shut down the supermarket
0
1
2
3
4
5
6
7
8 7
8
4
6
What kinds of strategic decision are taken by management of
Tesco to avoid losses due to reduction in sales of supermarket in
particular area
Column B

it is evaluated that most of employees have determined the retail companies are facing tough
competition that hampers growth of retail organization and reduces the profitability of
organization. Furthermore, it has been evaluated that market saturation, emergence of new
traditional and online retail companies etc. have created the negative impact on performance of
Tesco. In this context, present economic trends in the form of financial crisis and huge
competition in retail sector of UK have been addressed as most important elements or reasons of
sales reduction. This investigation has found that growth in online retail business along with
reduction in spending of consumers due to adverse economic conditions have played important
role in sales decline of company. This research has evaluated that an organization associated
with retail has to wide range of strategic decisions such as reduction in prices of products,
closing of stores etc. to manage losses that have been occurred due to reduction in sales volume
of firm. In the context of present research, evaluation of secondary data has found that growing
competition among retail companies is identified as most important element along with market
saturation that have created negative impact on the sales of retail brand. In addition to that it has
addressed that a retail organization can manage market competition with the help of various
creative services associated with product development, pricing and promotion.
As per the outcomes and findings of present study, the management of Tesco should have
to develop appropriate strategies for cost reduction through which management will be able to
reduce prices of different products. In addition to that business entity needs to adopt a systematic
plant for establishment of long term relationship with consumers with the help of attractive offers
and loyalty program that would influence ability of organization to retain consumers for long
duration.
Recommendation for the area of future research
As per the outcomes of present investigation, researcher requires to carry out further
research to assess the impact on financial crisis on behaviour of consumers. This research will
provide wide range of information about the change in interest of people after the period of
recession. Apart from that further study will be carried out to examine the effect of growth in
online retail business on traditional retail practices.
22

REFERENCES
Books and Journals
Allwood, J. M. and et.al.,, 2008. An approach to scenario analysis of the sustainability of an
industrial sector applied to clothing and textiles in the UK. Journal of Cleaner Production.
16(12). pp. 1234-1246.
Ambler-Edwards, S. and et.al., 2009. Food futures: rethinking UK strategy. A Chatham House
report. Chatham House.
Burrows, R., 2012. The Market-Driven Supply Chain: A Revolutionary Model for Sales and
Operations Planning in the New On-Demand Economy. AMACOM Div American Mgmt
Assn.
Chui, W., 2007. Research Methods for Law. Edinburgh University Press.Saunders, M. et. al.,
2006. Research Methods for Business Students, Harlow: Prentice Hall.
Creswell, J. W., 2013. Qualitative, Quantitative, and Mixed Methods Approaches. 4th ed. SAGE
Publications, Inc.
Dougherty, J. and Gray, C., 2006. Sales and Operations Planning - Best Practices: Lessons
Learned from Worldwide Companies. Trafford.
England, J. and John England, B., 2012. Retail Impact Assessment: A guide to best practice.
Routledge.
Fernie, J, 2009. Logistics and retail management: emerging issues and new challenges in the
retail supply chain. Kogan Page Publishers.
Fernie, J., Sparks, L. and McKinnon, A. C., 2010. Retail logistics in the UK: past, present and
future. International Journal of Retail & Distribution Management. 38(11/12). pp.894-914.
Fransoo, J., Waefler, T. and Wilson, J., 2010. Behavioural Operations in Planning and
Scheduling. Springer Science & Business Media.
Ganesan, R., 2015. Sales and Operations Planning. The Profitable Supply Chain. pp.175-192.
Garner, M., Kawulich, B. and Wagner, C., 2012. Teaching Research Methods in the Social
Sciences. Ashgate Publishing, Ltd.
Gwynne, R. N., 2008. UK retail concentration, Chilean wine producers and value chains. The
Geographical Journal. 174(2). pp.97-108.
Hansen, K. R. N. and Grunow, M., 2015. Planning operations before market launch for balancing
time-to-market and risks in pharmaceutical supply chains. International Journal of
Production Economics. pp.129-139.
23

Haskel, J. and Sadun, R., 2012. Regulation and UK retailing productivity: evidence from
microdata. Economica, 79(315). pp.425-448.
Ingram, T., 2012. Sales Management: Analysis and Decision Making. M.E. Sharpe.
Jackson, L.S., 2008. Research Methods and Statistics: A Critical Thinking Approach. 3rd ed.
Cengage Learning.
Johnson, B. and Christensen, L., 2010. Educational Research: Quantitative, Qualitative, and
Mixed Approaches. UK: SAGE.
Johnson, P. and Clark, M., 2006. Business and management research methodologies –Vols. 1-6,
London: Sage Publications.
Mena, C., Adenso-Diaz, B. and Yurt, O., 2011. The causes of food waste in the supplier–retailer
interface: evidences from the UK and Spain. Resources, Conservation and Recycling.
55(6). pp.648-658.
Merriam, B. S., 2009. Qualitative Research: A Guide to Design and Implementation. 3rd ed. John
Wiley & Sons.
Merriam, B. S., 2009. Qualitative Research: A Guide to Design and Implementation. 3rd ed. John
Wiley & Sons.
Online
Pepe, M. S., 2015. Teaching Supply Chain Operations Planning Using Actual Industry Data
Across Multiple Organizations. Journal of Business Case Studies (JBCS). 11(1). pp.15-22.
Retail 2023: Trends affecting retail strategy over the next decade. 2013. [Pdf]. Available
through:
<http://www.rbs.co.uk/content/corporate/downloads/20130RBS_Retail_Report.pdf>.
[Accessed on 27th October 2015].
Sainsbury (J) PLC. 2015. [Online]. Available through:
<http://financials.morningstar.com/ratios/r.html?t=SBRY>.[Accessed on 27th October
2015].
Saunders, M., Lyon, F. and Möllering, G., 2012. Research Methods. Edward Elgar Publishing.
Singh, K., 2010. Research Methodology. APH Publishing.Bak, O., 2011. The Role of Qualitative
Research in a Mixed Methods Study - Assessing the e-Business Enabled Transformation in
a Strategic Business Unit. Qualitative Research Journal. 11(2). pp.76 – 84.
Smith, S., 2010. For love or money? Fairtrade business models in the UK supermarket sector.
Journal of Business Ethics. 92(2). pp.257-266.
24

Tesco names 43 UK store closures. 2015. [Online]. Available through:
<http://www.bbc.com/news/business-31023136>.[Accessed on 27th October 2015].
Tesco PLC ADR. 2015. [Online]. Available through:
<http://financials.morningstar.com/ratios/r.html?t=TSCDY>.[Accessed on 27th October
2015].
Wallace, T. and Stahl, R., 2010. Sales and Operations Planning. T. F. Wallace.
Wrigley, N. and Lowe, M., 2014. Reading retail: a geographical perspective on retailing and
consumption spaces. Routledge.
Yu, W. and Ramanathan, R., 2008. An assessment of operational efficiencies in the UK retail
sector. International Journal of Retail & Distribution Management. 36(11). pp.861-882.
Yu, W., Ramanathan, R. and Nath, P., 2014. The impacts of marketing and operations
capabilities on financial performance in the UK retail sector: A resource-based perspective.
Industrial Marketing Management. 43(1). pp.25-31.
25

APPENDIX
Questionnaire
1. Name-
2. Job position-
3. Age
 16 - 20 years
 21 - 25 years
 26 - 30 years
 31 - 35 years
 Above 35 years
4. Do you agree that, condition of retail industry in not good?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
5. What is the most important factor that can be considered as important cause of sales reduction
in the supermarkets of Tesco within Woolwich Area?
 Emergence of new companies
 Reduction in the price of food products
 Change in interest of consumers
 Price wars
6. Do you think that financial crisis have influenced negative impact on the sales of traditional
supermarkets of Tesco in negative way?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
26

7. How online shopping sites are attracting consumers from traditional purchasing process
through super markets and retail outlets of Tesco?
 High discount
 Attractive offers
 Easy return policies
 Door step services
8. Do you think that decline in sales of supermarkets influences strategic decisions of firm?
 Yes
 No
9. What kinds of strategic decision are taken by management of Tesco to avoid losses due to
reduction in sales of supermarket in particular area?
 Offering attractive discounts
 Creative services
 Changing staff of stores
 Shut down the supermarket
10. Would you like provide any suggestion to management of Tesco regarding improvement in
sales of retail outlet
______________________________________________________________________________
_______________________________________________________________________
27