Business Report: Analysis of Wilko Retail Ltd. and Retail Trends

This report offers a comprehensive analysis of Wilko Retail Ltd., a British high street chain, within the context of current retail industry trends. It begins with an introduction to the retail sector and a brief overview of Wilko. The main body of the report explores evolving retail trends, including the impac...Read More

Inquiry Based
Learning

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The trends in retail industry........................................................................................................3
Analysis of Wilko Retail Ltd......................................................................................................4
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Retail sector is a market or business segment in which business owners, entrepreneurs,
small businesses, organisations, start-up owners and other meet for conducting transactions of
sales and purchase from manufacturers to supplier that are retailers and serving them to end users
(Lee, 2018). The retailers fills the gap between the manufacturers and consumers by making
them connect with each other and understanding one another needs for matching with their
expectations. The assignment is prepared on Wilko Retail Ltd. A British high street chain which
was founded in 1930 by James Kemsey Wilkinson and headquartered in England, United
Kingdom. The company deals in retail industry selling basic grocery, toiletries, consumer goods
and others. The report will conduct a detailed secondary research for gathering knowledge about
the trends of retail sector and thoroughly examining the organisational external environment. Al
last once analysis is completed then recommendations will be provided for changing the
practices and aligning them with the trends.
MAIN BODY
The trends in retail industry
The global economy is suffering form a dangerous and lifetaking disease known as
Covid19 which is slowly eating up the whole world's economies and affecting them inevitably.
The world is entering into an unpredictable phase of recession which will be having long term
effects and negative influence over different industries in the world. United Kingdom is also
severely affected by the disease and the whole country like others is under lockdown. People are
not allowed to leave homes, industries have stopped, manufacturing is stopped and everyone is
suggested to stay inside for their safety (Nandonde and Kuada, 2018).
These measures are taken for well being of the population and keeping people and loved
once safe but the economy and industries are negatively influenced. The trends in retail industry
where Wilko Retail Ltd. is operating have changed, fluctuations is taking place in the society
bringing unknown changes that is drop and boost in sales and revenue units of retail sector. Few
of these trends according to which industry is flourishing and going to run in next few years are
as follows:
 Brands and products – Trading up, Trading off, Trading down- In recent years
consumers are facing major problems in relation with availability of products either

branded or non branded. In such scenario the degree of popularisation of goods is
affected in regards to customers choice to buy goods of specific brand. Therefore, the
trend showcase increase in trading up where people only expensive and branded goods.
Others fluctuated between trading off and trading down in which they move to cheaper
goods. In trading off's consumer more often buy cheap good but one time or the other
goes to expensive product of a particular brand (Seyfang and Gilbert-Squires, 2019) .
 E-Commerce- The market is changing and bringing in a new trend of Smart Retail which
shows a significant and unprecedented growth in E-Commerce in recent past years. The
same growth is seen in recent week since Covid19 spread but in a higher pace. Weekly
sales is induced which shows increase of around 160 percent in E-Commerce in United
Kingdom. In comparison to it Brick and Mortar sales is showing downwards graph by 87
percent. The trend clearly showcases the evolving preferences of people towards their
comfort and ease. By using E-Commerce sales services people can get what they need
whenever they need by just few clicks without any extra hustle. In current Covid19
period consumers are opting for E-Commerce services for protecting them and being safe
in their houses. Therefore, it showcases the longer term implications of the trend in the
retail sector and on the operations of businesses.
 Shopping confidently – Safety Concerns- Customers prominently select their retailers
in order to patronise as per the level of safety and protection considering the particular
retailer exhibits. For this, customers always cross check for their safety factor and shop
confidently considering their purchasing and thoughts. For example, in food sector at the
time of lockdown they always tends to find their path and also maintain social distancing
from each other undertaking the marking for queues (Bulmer, Elms and Moore, 2018). In
terms of this, the respective retailer also tends to consider the government norms and
guidelines which are developed at the time of COVID-19 and also offer clear guidelines
for each and every retailer regarding their safety measures.
Analysis of Wilko Retail Ltd.
PESTLE Analysis of Wilko Retail Ltd.:
It is undertaken as the external framework which is useful in identifying and scanning the
external environment as it is useful in order to analyse and monitor the macro factors that has
major impact on the overall performance of company. This framework is useful at the time when

business at the starting stage or an organisation want to expand itself to earn more profitability. It
is useful because in this, tends to identify various risk factors that are present in business
environment and also find prominent ways to overcome these factors. Evaluation of these factors
are mentioned as underneath:
PESTLE DESCRIPTION
Political/Legal The first external factor which is most concerned by the management of
organisations which imposes huge influence over the business is political. The
company Wilko Retail Ltd. is operating in United Kingdom where currently
political and legal environment is not stable and favourable. Recently Brexit
took place which brought enormous changes in legal laws and regulations that
are uncertain and unknown to the businesses and to functions (Edwards and et.
al., 2018).
Economic The economy of United Kingdom is strong and stable one in which rendering
equal platforms to businesses to grow and organisations to work efficiently by
exploring all the opportunities arising. Recently, an unstable and unfavourable
environment is created in UK due to Brexit and now Covid19. But the
economy is strong and can handle the pressure imposing both positive and
negative influence over the business of Wilko Retail Ltd.
Social The people or customers of UK are known to be honest and loyal consumers
who sticks to particular brands for fulfilling their needs for longer period. That
is the social environment has positive influence over the operations of Wilko
Retail Ltd. The company will be facing few consequences due to fluctuating
social trends and unfavourable conditions caused due to Covid19 for which
they have to take appropriate measures (Galipoglu and et. al., 2018).
Technological Digital tools and technology is evolving regularly bring new platforms for
businesses to showcase their abilities and presence along with new
technologies for implying in the operations for boosting the speed of
functions. UK have access to all the new and fresh innovation in technologies.
But Wilko Retail Ltd. is not make appropriate use of these technologies which
can affects its operative effectiveness and can also bring down its competitive

position. Company have to bring changes and updates the induced
technologies for work.
Environmental The environmental factor is in present scenario do not hold any positive
impact over the operations of Wilko Retail Ltd. as due to Covid19 the whole
country is under lockdown people are losing jobs and their income is
reducing . This is directly affecting retail industry as now consumers demands
have changed and become restricted to only those goods which are fulfilling
their basic needs and the retailers are suffering losses.
Porters Five Forces Model:
The model is known for making analysis of the competitiveness of a company in the
environment or region it is operating and running its functions. The model has five aspects on
which competitiveness is examined and a unique competitive value of the organisation is
identified which it explores and maintains for longer period for earning higher profits (Thomas,
Epp and Price, 2020).
FIVE
FORCES
DESCRIPTION
Existing
rivalry
Wilko Retail Ltd. is operating in United Kingdom in which exiting rivalry is
high and market is saturated. Huge percentage of market share is acquired by
large supermarkets and retailers like Tecso, Walmart. Businesses are
developing and rendering aggressive competition to the brand.
Bargaining
power of
customers
The bargaining power of consumers is high as number of other stores are
available in market with similar offerings and with very low switching cost
and can fulfil their needs (Thaivalappil and et. al., 2018).
Bargaining
power of
suppliers
The suppliers on the other hand have a moderate power over Wilko Retail Ltd.
As the firm is not dependent upon one or two suppliers a proper supply chain
is developed and managed by the company for keeping up with their demands.
Threat of
substitutes
The threats of substitutes for Wilko Retail Ltd. is also, moderate as the entry
barriers are high, current situation is not in favour but other exiting firm who

are already in market are evolving too and they are making changes and can
win over the competitiveness of Wilko Retail Ltd.
Threats of new
entrant
Lastly, is threat of new entrant is very low as the current economic,
environmental and political surroundings are not in favour of the business
owners. This increases the burden and opening new business in such situation
is very risky and prone to losses.
Recommendations
The in depth and thorough analysis conducted in the section above is in two parts where
secondary research methods are used. In first section market trends are identified and evaluated
which are being flourishing in retail industry. This reflects that digital media, e-commerce and
consumer preferences is important for company to known and make best use of for smoothly
working in the market and stay competitive.
In the next segment company's that is Wilko Retail Ltd. analysis is conducted by making
use of PESTLE and Porter's Five Forces Model which states that organisation is losing its
competitiveness as the external environmental factors are negatively affecting it (Kotni and
Karumuri, 2018). In order to face the consequences and stabilise the functions few
recommendations are made below and elaborated:
 Digitalisation and E-Commerce- Technology is a potential source and external factor
which is in favour of the Wilko Retail Ltd. The company should make use of the new
updated technologies and software for entering the retail market through E-Commerce
and make sales through it. Wilko Retail Ltd. do not have their presence on social
platforms and sites. This is a disadvantage and opportunity as well which if explored
properly can render a competitive edge to Wilko Retail Ltd. The company should be
dealing market and rendering products and services to customer through both physical
and virtual distribution channels. It will resolves the issue of market presence in low cost
and increases firms popularity (Pantano and Vannucci, 2019).
 Consumers Preferences and Curated Experience- The current situations which is
being faced by the customer of unavailability of goods and imbalanced demand and
supply curve is a huge issue. Wilko Retail Ltd. can make use of their database and other
research techniques to known their exiting customers requirements and to gather

information about the potential buyer and there preferences. This will allow Wilko Retail
Ltd. to be more productive and render better shopping experiences top consumers or
buyer. Company will be able to manage their stocks and make sure that people are getting
what they require and when they need it. Customer preferences ion today's business
environment is becoming more important aspects for businesses and specifically for
gaining competitive edge in market and staying one step ahead of others in the market
place.
CONCLUSION
The above report acknowledges the retail industry trends and the ways companies makes
arrangements for aligning themselves with the external environment, it summarises the need for
retailers to be aware and attentive of the external market as economy is not stable and not at all
beneficial for the businesses. In today's scenario company have to make themselves adaptable to
the change and development taking place in the industry in order to function properly and work
in accordance to the requirements of others and most significantly of consumers. In relation to
the same, trends are identified showing fluctuations in preferences and needs of consumers and
their changing buying behaviours. Moreover, PESTLE and Porter's five forces model is used for
examining the organisational practices for dealing with such changes. At last recommendations
are provided such as effective use of technology and others.

REFERENCES
Books and Journals
Bulmer, S., Elms, J. and Moore, S., 2018. Exploring the adoption of self-service checkouts and
the associated social obligations of shopping practices. Journal of Retailing and
Consumer Services. 42. pp.107-116.
Edwards, K. and et. al., 2018. Designing retail spaces for inclusion. Journal of Retailing and
Consumer Services. 44. pp.182-190.
Galipoglu, E. and et. al., 2018. Omni-channel retailing research–state of the art and intellectual
foundation. International Journal of Physical Distribution & Logistics Management.
Kotni, V. D. P. and Karumuri, V., 2018. Application of Herzberg two-factor theory model for
motivating retail salesforce. IUP Journal of Organizational Behavior. 17(1). pp.24-42.
Lee, K. C., 2018. Grocery shopping, food waste, and the retail landscape of cities: The case of
Seoul. Journal of Cleaner Production. 172. pp.325-334.
Nandonde, F. A. and Kuada, J., 2018. Perspectives of retailers and local food suppliers on the
evolution of modern retail in Africa. British Food Journal.
Pantano, E. and Vannucci, V., 2019. Who is innovating? An exploratory research of digital
technologies diffusion in retail industry. Journal of Retailing and Consumer
Services. 49. pp.297-304.
Seyfang, G. and Gilbert-Squires, A., 2019. Move your money? Sustainability transitions in
regimes and practices in the UK retail banking sector. Ecological Economics. 156.
pp.224-235.
Thaivalappil, A. and et. al., 2018. A systematic review and thematic synthesis of qualitative
research studies on factors affecting safe food handling at retail and food service. Food
control. 89. pp.97-107.
Thomas, T. C., Epp, A. M. and Price, L. L., 2020. Journeying Together: Aligning Retailer and
Service Provider Roles with Collective Consumer Practices. Journal of Retailing. 96(1).
pp.9-24.
Online:
Post COVID-19 Emerging Retail Trends, 2020. [Online] Available Through:
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