Contemporary and Future Challenges in UK Retail: Tesco Study

This report examines the contemporary and future challenges in the UK retail sector, with a specific focus on Tesco. The research explores the current issues such as multi-channel retail, mobile shopping, and business flexibility, alongside future challenges including economic conditions and the need for digitally enabled stores. The methodology includes a research proposal, literature review, and a detailed methodology section with a time plan and data analysis. The findings, based on employee surveys, highlight concerns about mobile shopping, economic pressures, and the importance of offering unique products and digital shopping experiences to overcome these challenges. The study concludes with recommendations for Tesco to adapt to the evolving retail landscape and improve its human resource practices for future success. The report also includes references and a detailed analysis of the collected data from employee responses, organized by themes.

CONTEMPORARY
THEMES

TABLE OF CONTENTS
REASERCH TITLE ........................................................................................................................3
TASK 1 RESEARCH PROPOSAL.................................................................................................3
Research title...............................................................................................................................3
Aim .............................................................................................................................................3
Rationale of research project.......................................................................................................3
Literature review.........................................................................................................................4
Introduction.................................................................................................................................4
Methodology...............................................................................................................................5
Time plan ...................................................................................................................................5
Findings and analysis..................................................................................................................6
Conclusion...................................................................................................................................6
TASK 2 LITERATURE REVIEW..................................................................................................7
Research title...............................................................................................................................7
Aim..............................................................................................................................................7
Rationale of research project ......................................................................................................7
Literature review ........................................................................................................................7
Introduction ................................................................................................................................9
TASK 3 METHODOLOGY............................................................................................................9
Techniques and Procedures ........................................................................................................9
Timeline (Action plan and Gantt Chart) ..................................................................................10
Data analysis ............................................................................................................................13
TASK 4 FINDINGS AND ANALYSIS........................................................................................20
Conclusion ...............................................................................................................................20
Recommendations.....................................................................................................................21
REFERENCES..............................................................................................................................22

REASERCH TITLE
“Contemporary and future challenges in retail sector of UK- A study on Tesco”.
TASK 1 RESEARCH PROPOSAL
Research title
“To critically assess the current and future challenges in retail sector of UK- A study on Tesco”.
Aim
“To critically analyse the present and future challenges in the retail industry of UK in context of
Tesco”
Rationale of research project
The retail industry of UK plays a vital role in its economy as in 2015 this sector produced £340
billion sales. The retail industry is the largest private industry covering businesses which sells
goods to the general public. This includes businesses such as department stores, independent
stores and virtual stores. This sector provides employment to over 10 percent of UK workforce.
The contribution of retail sector in tax is about £ 17.5 billion. This sector leads to innovation.
The factors which are reshaping the purchasing experiences around the world are E-commerce
and the self services. The share of UK's retail industry in the global internet retail sales is 11
percent and it is having highest expenditure per person for E-commerce of any nation (Walker
and Jones, 2012). The International brands of UK attract internal investments and it has given the
tag of “shopping capital” to London all over the world. But despite of these facts about retail
industry, there are some challenges which are faced in the present and future also. Tesco Plc is
one of the British Multinational grocery and general merchandise retail firm which operates in
the retail sector of UK. Originally, it was a grocery retail firm in UK but then it diversified
geographically into areas like, clothes, electronic items, furniture, toys, financial services,
telecoms and internet services, retailing of books, petrol and software. Thus, the rationale behind
this research project is to identify and analyse the current and future challenges which can make
a significant impact on Tesco.
Research objectives:
 To identify the present issues faced in retail industry of UK with reference to Tesco

 To evaluate the future challenges in retail industry of UK in context of Tesco
 To recommend some strategies to overcome current and future challenges in retail
industry
Literature review
Present issues faced in retail industry of UK with reference to Tesco
In accordance to the view of Nickson and et. al., (2012) in the current context, some of the major
challenges faced by the retail industry of UK are multi-channel retail, mobile shopping, and
giving business flexibility. The first challenge of multi-channel retail states that it is not adequate
for the business firms to operate with a single channel for marketing. Smartphone and tablets
facilitates the customers to buy products and services at any time from any store which they
want. . Second challenge is the mobile shoppers. Patrons are developing the practice of checking
prices of rivals firms online when they visit any shop. This practice is named as “showrooming”
which is increasingly becoming popular and thus it is causing traditional retail firms lot of
tension. Goworek and et. al. (2012) asserted that in-store experience and customer services have
a major role in attitudes of consumers in showrooming. Majority of patrons prefer shopping by
using mobile. The issue is that if the consumers do not get the product they get dissatisfied from
the services. The third contemporary issue faced by the retail firms in UK are business
flexibility. To adapt to an evolving marketplace, businesses needs to bring more flexibility in
their business practices.
Introduction
The retail sector of UK is the largest private industry which covers business organisations
that sells products and services to consumers. Businesses such as large chains, department stores,
independent stores and virtual stores come under the retail industry. Retailing is the procedure of
selling consumer goods and services to patrons via multiple distribution channels for earning
profits (Piotrowicz and Cuthbertson, 2014.). The present research project is based upon
challenges in the present and future context of UK with reference to Tesco. The purpose behind
this investigation is to analyse these issues which are affecting operations of the chosen retail
company. These challenges can be multi-channel retail, business flexibility and mobile
purchasing. Apart from these challenges, there are more challenges such as management of
change, complexity and risk, enhancement of collaboration, cross functional working and
customer experience and many more.

Methodology
Research methodology is a way in which outcomes of research in context of the specific
problem are examined. In this, there are several methods which support the organisation to attain
goals and objectives. In the current research, scholar is preferring to take use of descriptive
research design. Also, research philosophy of Interpretivism will be preferred by the investigator
in this study. Along with this, inductive research approach will be taken for analysing the topic
of the report (Mackenzie Tan Hoverman and Baldwin, 2012) Furthermore, data collection will be
done by using primary data as well as secondary data. In the end, it will be analysed by using
qualitative techniques under which thematic analysis will be preferred b y the researcher.
Time plan
Key Activities
Week
1
Week
2 & 3
Week4 Week
5
Week
6
Week
7
Week
8 & 9
Week 10 Week 11
Preparation of
Introduction
Literature Review
Collection of
Secondary
Information
Examination of the
Collected Data

Research Design
Research
Methodology
Acquiring Primary
Data
Analysing Primary
and Secondary
Data
Conclusion and
Recommendations
Completion of
Leftover Work
Revision and Draft
Final Submission
Findings and analysis
From the above research proposal, it has been found that retail sector of UK is a
flourishing industry and has a major contribution in its economy. But there are some challenges
which are being analysed that the retail firms are facing in the present context as well as for
future. These challenges can make a significant affect on operations of Tesco company also.

Conclusion
From the aforementioned proposal, it has been concluded that retail sector in United
Kingdom is witnessing several challenges such as mobile shoppers, flexibility in businesses,
change and risk management, customers experience etc. It has been assessed that these
challenges makes long term affect on the operations and functioning of chosen retail firm Tesco.
TASK 2 LITERATURE REVIEW
Research title
“To conduct a critical assessment of the current and future challenges in retail sector of UK- A
study on Tesco”.
Aim
“To critically analyse the present day and future challenges in retail industry of UK in context of
Tesco”
Rationale of research project
The present investigation is prepared to identify and analyse certain present and future
challenges which makes their significant impact on retail industry of UK with specific context of
Tesco. The industry is facing immense pressure from past few years due to number of reasons
which includes growth and evolution of supermarkets, online retailing and recession. With
increasing competitive market, retail firms such as Tesco have to face competition for providing
best customers services (Leask Fyall and Barron, 2013). Customers desire for set of personal
services of traditional retailing and convenience of taking use of technology. Thus, chosen firm
has to strive for providing seamless buying experience.
Literature review
Present issues faced in retail industry of UK with reference to Tesco
According to the views of Haskel and Sadun, (2012) it is no longer enough for retail
firms to function with only a single market. Smartphones and tablets have given the facility of
buying good and services from any place at any time from anybody. Nevertheless, for the
purpose of future oriented business, execution of a system which unites all retail channels is a
good way to invest. Also the increasing habit of checking prices of competitors online when they
pay a visit to a store is increasingly becoming famous and thus the traditional retailers are
concerned about it. Baud and Durand, (2012) stated that other challenge faced by retailers is to

manage change, complexity and risks. Change is responsible for success in retail sector. Whether
changes can be for merger and acquisition, supply chain management, emphasising on customers
and demographic trends, grasping omni channel, adopting mobile shopping or bringing more
flexibility in business process. Also business flexibility is one of the significant challenge which
means that a business needs to introduce more flexibility in the business process to adapt to
evolving marketplace. For example, the only method to contend patrons demands for omni-
channel services is to become flexible in the manner that they communicate with them to give
them a consistent experience.
Piotrowicz and Cuthbertson, (2014 ) asserted that retention and acquisition of customers is also a
problems for retailers. This is not a new issue for retail firms, but the solutions have transformed
in a dramatic manner and will continue with the same. In the past times, it was simple and easy
to gain customers if a firm was having a budget, most outstanding outlets and effective
advertising space. Loeb, (2016) argued that if the goods and services were best and desirable, a
firm would have patrons. This approach is still present in online which is known as Paid Search
and it does works without any question mark. In the coming future, firms will focus on attracting
new consumers and most necessarily to make them interact with potential new customers. Retail
firms will need to consistently evolve and update content marketing and PR strategies which
matches with their customers and their brand.
Future challenges in retail industry of UK in context of Tesco
According to the view of Fernie and Sparks, (2014) there are some future challenges
which retail firms may have to face in the near future. These needs to be focused as these
challenges will make their impact on operations and profitability of businesses. The pressures of
cost, increasing inflation rates and steady wage growth can affects confidence of patrons and
thus reduce demand. Retail firms have to satisfy with current disturbance from the next waves of
digital technology and thus they are required to prioritise investment in technology which can
actually add value for consumers or make an increase their operations with efficiency. In the
future years, retail firms have to pay attention on managing change in their businesses.
Hristov and Reynolds, ( 2015) quoted that to understand the global supply chain is also a
challenge for retailers in UK. However. The managerial impacts of global supply chains should
be understood in a better manner by the industry. Also firms will require good employees to sell
the products and services. This challenge will rise due to impact of high cost taking place from

national living wage and apprenticeship levy. Those firms will win who do not lose trust and
confidence in their workforce. Along with this, economical conditions will observe a pressures
on cost and margin because the exchange rates will continuously fluctuate. The current review of
business rates and affect of upward only rent reviews will be also affecting retail organisations.
Wittman Beckie and Hergesheimer, (2012) said that customers journey will get shifted from
becoming a “nice to do” to first priority. Retail companies will have to review and enhance the
whole customer experience. Culture of firm is an essential variable and it will be a challenge for
multi-brand retail organisations in which labels does not control consumer proposition. Apart
from these challenges, crisis management is also one significant challenge for retailers. Ranging
from warehousing problems to corporate governance failures, during past year leading retail
companies spent their most of time in press with wrong reasons. In the future years, they have to
think about this approach.
Introduction
Retail industry of United Kingdom is the largest sector which covers those business
which sells goods and services to patrons. Businesses like large chains, virtual stores, department
stores ad independent stores fall in the category of retail sector. In global internet retail sales is
the share of UK's retail industry is 11 percent and it is having highest spend per person for E-
commerce of any nation. This investigation is prepared to study current and future challenges of
retailers in UK in context of UK. The intention for this research is to critically assess the issues
which are making implications on the operations of quoted retail organisation. These issues are
change management, risk management, mobile shopping, cross functional working and
customers experiences.
TASK 3 METHODOLOGY
Techniques and Procedures
Research design is a kind of plan which is utilised for research problems and their
solutions. They provides a direction and systematic process to conduct a research. In this section,
investigator takes help of numerous methods of study for critical assessment of current and
future challenges in retail sector of UK with particular reference to Tesco. Research design is
also comprising of specific grounds for selection of research methods and designs to examine the
problems of investigation.

 Research approaches: Approaches are the ways for developing new hypothesis and
understanding for increasing the overall understanding of entire investigation. There are
mainly two kind of research approaches which are called as Deductive research approach
and Inductive research approach. Inductive approach are utilised to design new theories
and qualitative research technique is taken in use for this approach (Mackenzie Tan
Hoverman and Baldwin, 2012) On the contrary, deductive research approach is applied
to test the current theory with reference to research. In the present research study,
inductive research approach is preferred by investigator as it supports the assessment of
solutions of research problems.
 Data collection: Data collection is a method of assembling and evaluating data and
information which is gathered from numerous sources to achieve aims and objectives of
the research. The two methods of data collection are primary data and secondary data.
Primary data is of original nature and does not undergoes with any kind of statistical
methods (Wildemuth, 2016). The main sources in primary data consists of interviews,
direct observation, surveys, focus groups etc. on the other hand, secondary data is that
type of data which is gathered and utilised by some other person with his own purpose.
In the present research, investigator has preferred for primary as well as secondary data. Data analysis: This is a method of applying numerous statistical and logical techniques
that are taken in use for gathering data and information. Data analysis provides direction
to collect data for future as well as addresses research questions. With the support of this,
researcher can transform data into knowledgeable form and it defines relationship
betwixt several research factors (Cozby and Bates, 2015). In the current investigation,
scholar has given preference to thematic analysis due to a simple reason that it gives
flexibility to scholar for using numerous theories. To evaluate a large sample, this kind
of analysis is most suitable.
 Sampling: Sampling is that technique in which selected units from a given population
are taken as a sample. In the present study, investigator has taken 10 employees of Tesco
as sample who are given a set of questionnaire to gain primary information from them.
This will give equal chances to employees of quoted firm to take part in the investigation
(Groenewold and Lessard-Phillips, 2012).

Timeline (Action plan and Gantt Chart)