Analysis of UK Consumer Retail Spending During the 2020 Pandemic

This report delves into the significant changes in UK consumer retail spending during 2020, primarily driven by the COVID-19 pandemic. It utilizes key economic theories, such as supply and demand analysis, to explain shifts in consumer behavior influenced by factors like population demographics, income levels, employment, and the prices of substitute and complementary goods. The report further examines UK governmental and economic policies, including poverty programs, government transfers, and retail subsidies, and their effectiveness in influencing consumer retail spending habits. The analysis highlights the impact of the pandemic on the retail industry, focusing on how government interventions aimed to mitigate losses and stimulate economic recovery. The report provides a comprehensive overview of the economic challenges and policy responses that shaped the UK retail landscape in 2020, offering valuable insights into the interplay of economic forces, consumer behavior, and government intervention.

Economics for Business

EXECUTIVE SUMMARY
It has been concluded that, changes within the size of population can influence the demand for
retail goods and services. This pandemic has led to unemployment and lower degree of income
levels. Government transfer is considered to be one of the effective measure which helps in
distributing the income and attain higher operational goals. When the price of the substitute
goods falls and the price the complementary rises then the demand curve shifts to the left. This
eventually has led to the decrease in the demand and shifts the demand curve to the left. .
Changes within the size of population can influence the demand for retail goods and services.
The economy of the UK in turn has experienced measurable degree of changes because of the
Coronavirus pandemic. It has been concluded that, Retail subsidies in turn is considered to be
highly significant because it helps in effectively recovering from the losses which has been faced
by the retail industry within UK. Stimulus package is referred to as a package of tax as well as
incentives which has been used by the government in UK in order to stimulate economy.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS.................................................................................................................3
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Using key economic theories, explain the significant unique changes in the consumer retail
spending that the UK economy has experienced in the year 2020.............................................1
TASK 2............................................................................................................................................5
Examining the key UK governmental as well as the economic policies which could be used in
order to influence the consumer retail spending habits in year 2020..........................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business economics is considered to be as one of the field which has been applied within the
economics that has been studied within the organizational, financial, market related and the key
environmental issues which has been faced by the key corporations. This study will focus on
effectively using the demand and supply analysis. This study also focus on identifying the key
main factors which is useful in effectively determining the negative as well as positive shifts
which has been linked to the changes within the consumer demand for the retail services and
goods. This study will also focus on examining the key UK governmental as well as the
economic policies which could be used in order to influence the consumer retail spending within
UK. It is significant in determining the factual policy. This study mainly focuses on the key
fluctuations of the consumer spending associated with the goods and services which has
significant positive as well as negative impact within the economy. In the year 2020, coronavirus
has significantly impacted the consumer retail spending.
TASK 1
Using key economic theories, explain the significant unique changes in the consumer retail
spending that the UK economy has experienced in the year 2020.
Supply and demand in Economics in turn are considered to be significant as it is useful in
showing key relationship associated with the quantity of commodity which the producers wishes
to buy. It is considered to be as one of the key significant model associated with the price
determination which has been used within the economic theory. However, the price of the
commodity in turn is significantly determined by interaction associated with the supply and
demand within the market (Wathen, Marchal and Lind, 2017). However, the resulting price is
considered to be as equilibrium price and focuses on representing the agreement between
consumers and producers of the good. The supply and demand is considered to be as an
economic model associated with the price determination in the market. In the equilibrium
market, the quantity of the goods which has been supplied by producers mainly equals the
quantity which has been demanded by the consumers. Demand and supply theory helps in
improving the business performance and attain greater efficiency.
 UK population and demographics
Change in the composition of the population as well as the demographic in turn are likely to
result in the shift in the demand curve. Changes within the size of population can influence the
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demand for retail goods and services. Such changes within the demand will result in a shift
within the demand curve. Variation in the demand and graph will largely affect the business and
leads to change in the business operations. UK has experienced measurable degree of changes
because of the Coronavirus pandemic and there seems to be change in the UK population and the
demographics (Đuričin and Herceg, 2018, June). This eventually tends to demonstrate there
seems to be not enough degree of demand related with the retail goods within the market and it
in turns largely affects the UK retail market at a great extent. The supply of the retail goods and
services are significant within the market.
 The income effect and shift within employment
The rise in the income within the employment will result in shift in the demand curve
towards the right. However, fall in the income and unemployment within the UK market
will result in shift in demand curve to the left. In this specific case scenario, the economy
of the UK in turn has experienced measurable degree of changes because of the
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Coronavirus pandemic. This pandemic has led to unemployment and lower degree of
income levels. This eventually results in reduced spending among the customers. The
supply of the goods are significant in the market but there seems to be no demand of the
specific product which helps in improving the business performance and attain greater
heights. Low income levels leads to low degree of demand of the retail goods and
services and leads to low degree of supply of the goods in the market.
 UK regional or the local demand factors
Change in the local demand factors will in turn eventually affects the change in the
demand of the retail goods and services. This has largely affected the business operations
with greater relevance. The pandemic has resulted in the lockdown which in turn has
affected the sale of the retail goods and services. This eventually has led to the decrease
in the demand and shifts the demand curve to the left. This eventually tends to
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demonstrate there is not enough demand of the goods within the market and it in turns
largely affects the UK retail market at a great extent.
 Complementary or substitute goods
In this specific case scenario, the economy of the UK has experienced measurable degree of
changes because of the Coronavirus pandemic and the population tends to mainly focus on using
goods which are of utmost necessity (González-Rivera, 2016). When the price of the substitute
goods rise and the price the complementary goods fall then the demand curve shifts to the right.
On the other hand, when the price of the substitute goods falls and the price the complementary
rises then the demand curve shifts to the left. On the other hand, the price of the substitute and
complementary goods is significant in effectively shifting the demand curve. When the price of
the goods tends to compliment the goods and also decreases. However, the demand in the
quantity in turn has decreased and leads to increase in the demand of the other goods and
services in this Coronavirus pandemic.
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TASK 2
Examining the key UK governmental as well as the economic policies which could be used in
order to influence the consumer retail spending habits in year 2020.
The UK finance tends to mainly focus on the development of the key economic plans and
development of the economic policies which in turn helps in the development of the government
plans and also protecting the jobs and also focuses on mitigating the key impact of the
coronavirus. It is considered to be of utmost importance to effectively pull back the key
emergency measures which has been brought when the country has undergone lockdown. This is
one of the key significant measure through which it helps in protecting the economy and also
driving the growth in the employment (Wathen, Marchal, and Lind, 2017). Also, effectively
complying with the key UK governmental as well as the economic policies will be useful in
influencing the consumer retail spending habits in the year 2020.
A bounce back plan is considered to be one of the key significant measure for the consumer as
well as the retail industry. A bounce back plan is a trade measure for the retail and consumer
industry which is useful in supporting business which was affected by the coronavirus. The
government focuses on effectively outlining new measures which helps in boosting up the
exports and also increases the British retail firm’s readiness in order to sell over the seas.
Government policies mainly includes creation of the retail and export Academy which helps
business and exporting using digital learning tools (Harzing and Mijnhardt, 2015). The UK
government measures and economic policies is considered to be prominent in offering immediate
support to the business and also relevant in ensuring Specialist set of advice through international
market and online retail. New measure is considered to be significant and supporting business of
the retail industry to effectively export goods and services overseas and help the sector recover
from the coronavirus.
Poverty programmes
Poverty programs are considered to be prominent because it is significant in helping and
benefiting the vulnerable sectors of the society within United Kingdom who has been affected in
coronavirus pandemic (Sloman and Jones, 2017). The government focuses on affectively setting
relevant set of measures and policies for both economic and social welfare. This is considered to
be one of the key significant program which helps in benefiting the society in UK and recover
the Losses which has been faced during Coronavirus pandemic. This is considered to be one of
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the key significant challenge which has been proposed within the economy. This is useful in
creating economic growth and improving employment opportunities for the people. It is also
significant in attaining higher degree of purchasing options which has been needed for reducing
poverty and improve higher operational Growth and productivity within the retail sector
(McCabe, and Snyder, 2015). Poverty programs is used to cause it helps the government of the
United Kingdom to help those people who has been severely affected during this Coronavirus
pandemic and provide them with retail goods and services in order to live and meet the basic
necessities with utmost accuracy and efficiency. Such poverty programs is highly beneficial for
the low income group within United Kingdom and Help them meet their basic needs during this
Coronavirus pandemic.
Government transfers
Government transfer programme is also one of the key significant measure which has been taken
by the government within macroeconomics. It is referred to as a redistribution of the wealth and
income by various means of government making a payment without any goods or services being
received in return. Please transfer payments are considered to be non-exhaustive. This is because
they do not directly absorb resources effectively and also create output. Government transfers
has been done by the UK government for the social security, welfare of the society and
unemployment compensation. This is considered one of the means of redistributing income from
the people to those people who do not have it. Government transfer is considered to be one of the
effective measure which helps in distributing the income and attain higher operational goals and
efficiency (Silva, 2019). Transfer payment is referred to as the Payment which has been made
without any specific corresponding production. The term transfer payment which has been made
by the government to the various individuals and sectors within the United Kingdom. This helps
in increasing the spending within the retail industry. Helps in taking necessary measures to
reduce losses within the Coronavirus pandemic and improve the production capacity and
profitability within the retail industry.
Retail subsidies
Subsidies is referred to as a sum of money which has been granted by the state or public body in
order to help the industry of the business and keeping up the prices of the commodity or the
services within the retail industry as low as possible (Ward, and Begg, 2016). Subsidy is also
referred to as government Incentive which is considered to be as a form of financial aid or
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support which has been extended in order to gain economic sector and helps in promoting social
as well as economic policy. Retail subsidies in turn is considered to be highly significant because
it helps in effectively recovering from the losses which has been faced by the retail industry
within UK.
Stimulus packages
Stimulus package is referred to as a package of tax as well as incentives which has been used by
the government in UK in order to stimulate economy and also focuses on saving the country
from financial crisis because of coronavirus pandemic. The key idea behind the stimulus package
is associated with providing tax debates and also focuses on boosting up the spending and also
increase the demand. This way it helps in increasing the Employment rate which eventually
helps in increasing the employment rate. This in turn helps in boosting up the spending in the
retail industry and recover the losses which has been occurred during the coronavirus pandemic.
The UK government must focus on using stimulus package as a great measure to ensure recovery
of losses within the retail industry and attain higher operational goals and efficiency (Sloman and
Jones, 2017). The finance minister of the UK focuses on developing stimulus package within the
retail industry. This is considered to be one of the great measure and effective economic policy
which results in growth in the job and lifting up the economy from this worst slump in centuries.
This is one of the effective measures to improve business sufficiency and leads to higher job
opportunities within retail industry.
Industry-specific measures
The government focuses on taking retail industry specific measures because it helps in providing
specialised option to reduce the losses because of the coronavirus pandemic. The retail industry
specific measures health and taking those necessary measures which helps in boosting up the
business and improve the operational performance and productivity with great accuracy and
efficiency. The Government focuses on taking necessary measures to improve business
efficiency and leads to higher sustainable growth within the retail industry (Wathen, Marchal,
and Lind, 2017). Necessary laws, policies and actions has been taken by the UK government
which benefits the retail industry and leads to higher growth and sales of the goods and services
within the retail industry. It is considered to be significant because it leads to progressive
integration associated with the global economy and helps in reducing the significance of national
boundaries and also make microeconomic characteristics of the global mobile organisation more
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important. In the retail industry specific measures helps in increasing the export and reach out to
other international boundaries to increase the sales and profitability of the industry. This
eventually leads to higher employment and attain higher operational goals and efficiency.
CONCLUSION
From the conducted study it has been summarized that, changes within the size of
population can influence the demand for retail goods and services. This pandemic has led to
unemployment and lower degree of income levels. This eventually results in reduced spending
among the customers. When the price of the substitute goods falls and the price the
complementary rises then the demand curve shifts to the left. This eventually has led to the
decrease in the demand and shifts the demand curve to the left. It is considered to be of utmost
importance to effectively pull back the key emergency measures which has been brought when
the country has undergone lockdown. The government focuses on affectively setting relevant set
of measures and policies for both economic and social welfare. Retail subsidies in turn is
considered to be highly significant because it helps in effectively recovering from the losses
which has been faced by the retail industry within UK. Stimulus package is referred to as a
package of tax as well as incentives which has been used by the government in UK in order to
stimulate economy.
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REFERENCES
Books and Journals
Wathen, S., Marchal, W. and Lind, D., 2017. Statistical techniques in business and economics.
McGraw-Hill Higher Education.
Đuričin, D. and Herceg, I.V., 2018, June. Industry 4.0 and paradigm change in economics and
business management. In International Conference on the Industry 4.0 model for Advanced
Manufacturing (pp. 37-56). Springer, Cham.
González-Rivera, G., 2016. Forecasting for economics and business. Routledge.
Wathen, S., Marchal, W. and Lind, D., 2017. Statistical techniques in business and economics.
McGraw-Hill Higher Education.
Harzing, A.W. and Mijnhardt, W., 2015. Proof over promise: towards a more inclusive ranking
of Dutch academics in Economics & Business. Scientometrics, 102(1), pp.727-749.
McCabe, M.J. and Snyder, C.M., 2015. Does online availability increase citations? Theory and
evidence from a panel of economics and business journals. Review of Economics and
Statistics, 97(1), pp.144-165.
Silva, E., 2019. The state and capital in Chile: Business elites, technocrats, and market
economics. Routledge.
Ward, D. and Begg, D., 2016. Economics for business. McGraw-Hill.
Sloman, J. and Jones, E., 2017. Essential economics for business. Pearson.
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