Woolworths Sales Decline: A Marketing Research Report on COVID-19

This marketing research report investigates the decline in Woolworths' sales, primarily focusing on the impact of the COVID-19 pandemic. It includes a situation analysis encompassing macro and micro environmental factors, an informal investigation of secondary data, and primary research findings. The report examines how COVID-19 negatively affected sales, the role of e-commerce as a strategic response, customer resistance to physical contact, and the importance of a healthy store environment. Statistical correlations and survey results are analyzed to support the findings, concluding with recommendations for Woolworths to adapt and improve its market position. Desklib provides students access to similar reports and study tools.

MARKETING RESEARCH 2

Table of Contents
INTRODUCTION...........................................................................................................................3
Findings............................................................................................................................................4
1. Objectives of study..................................................................................................................4
2. Situation analysis.....................................................................................................................4
3. Informal investigation of seconmdary data..............................................................................6
4. Analysis of results....................................................................................................................7
Primary research..........................................................................................................................8
Covid pandemic affected negatively sales of company...............................................................8
E-commerce is a key strategic choice to overcome negative impacts of covid 19......................9
Physical contacting in sales resist customers to come over company's stores...........................10
Healthy environment at stores...................................................................................................11
CONCLUSION..............................................................................................................................12
RECOMMENDATION.................................................................................................................12
REFERENCES..............................................................................................................................12
Appendix........................................................................................................................................13

INTRODUCTION
Woolworth company is a super market chain founded in the year 1924. Headquarter of
the company is located in New South Wales, Australia. Company is currently associated with the
1051 locations. The super market sector is a established premises at which all different products
are sale based on the individuals needs and demand of the potential customers in the market. The
organisation is among the fastest super market chain in Australia and allow a good basis to
deliver the whole study. This study is based on the event that could result into decreasing sales of
the company. Also the organisation is growing rapidly that could provide all the required
information needed to conduct the whole study. This entire research will be based on the data
that will collected through primary and secondary research study. Information or data become
the significant part of the research study that is conducted to deliver the final objectives of the
study conducted. Role of primary and secondary research is very essential in order to process the
overall objectives of the study.
Findings
1. Objectives of study
The objective of this study is to assess the impact of covid 19 over declining sales of the
organisation. In the recent time covid 19 pandemic has been demonstrated and identified as the
major challenge the whole society is faced. Pandemic has completed demolished the growth and
success opportunities for the all different business organisations at a global level (Seetharaman,
2020). Australia's economy could also affect immensely in against to the pandemic. In the time
of the covid business houses at a global level along with Australia got affected immensely. AS
many industries could shut down as a result of the pandemic. Major shut in the stores, lock down
has also imposed which could completely demolished the growth and development opportunities
and possibilities of the all different business houses channelise the business operations. Super
market stores were completely shut that could affect the growth and development possibilities of
the business ventures.
2. Situation analysis
Situation analysis comprises with the evaluation and analysis in respect to the macro and
micro business environment factors that can affect the business operations.
Macro environment impacts

Macro environment impact is comprises with the factors like political, economic, social,
technological, environment and legal factors influence the business operations of organisation.
All these are thee external business environment factor effect the business operations of
company.
Political factor: Political factor comprises with the policies formulated by the government to
enhance and boost the progress of the retail sector. The market sector comprises with the product
portfolio contain all the basic products require for living so the government contain a special
interest in the overall growth and development of the market (Fairlie, 202). The product portfolio
of the sector generate more attention of the potential customer towards the sector. In the time of
covid pandemic government has adopted the policies like lock-down, shutting down the market,
curfew and such like practices to control the pandemic situation. Political stability also exist in
the Australia which also favour the government to make strong decisions that can direct and
gudie the overall growth and progress of the business environment.
Economic factor: Economic factor of Australia is very progressive in nature. The retail sector is
emerging rapidly. The covid pandemic could completely demolish the overall growth ability and
potential of the retail market. The statistics clearly demonstrate that the growth of the sector has
been reported as -2.6% and -1.14% in the past two financial years (Jallow Renukappa and
Suresh, 2020). This declining in the growth is clearly reflecting the decreased sales of the sector.
Inflation in economy has also increased that could further demolish the buying power or capacity
of the potential customers under respective target market. Effect of covid is very negative over
the retail sector as the super market stores remain closed as a result of lock-down and such like
practices.
Social factor: is among the core macro environment factor influence the business operations of
the venture. This factor comprises with the choices, preferences, fashion, trends associated with
the society and such like elements. Role of social factor is to influence the choices of the people
in the respective target market. The impact of the covid 19 is over the society as a whole. As the
supermarket stores were completely closed that could further influence the growth and progress
of the sector in the respective business environment (Chinn and et.al.,2020). People were not
able to buy the product of their need as the stores were either shut or open only for the limited
time duration. In such a situation this become challenging for the companies to generate sales.

Technological factor: considered as the major element or factor affect the performance of the
retail market. Supermarket stores has used the technology in te time of covid to make the e-
commerce trade. At some level the technological development and advancement could support
the organisations in the retail market to deliver the sales but in larger situation this has
completely spoiled the growth possibilities. Only the e-commerce channels were able to operate.
The issue also raised in supply chain management as due to the over traffic over the sites the
demand was huge. In the situation of covid 19 only the e-commerce sites were able to operate
properly but the rest of the entities were completely unable to function. The result of all this was
in the face of low sales of organisations and reduced growth rate of the whole retail sector.
Environment factor: is another key element party of the macro business environment. This is
denoted as the environment friendly practices adopted in the sector. Organisations under the
retail sector has been engaged in various corporate social responsibilities like plantation, green
energy, water harvesting and such like policies (Angelucci and et.al., 2020). Environment factor
allow the companies to contribute in the overall growth of the society as a whole. In the time of
covid all the campaigns launched by companies belong ton the retail sector were completely
stopped. Also te calamity is proved as a cursed over the nature.
Legal factor: comprises with all laws and legal developments that is associated with the retail
sector. In order to deliver the business operations in retail sector various laws and legislations are
required to cope up with such as equality law, anti discrimination law and many other
legislations. In against to deliver the business operations organisation associated with the retail
sector needed to incorporate with all the laws and legal regulations associated with the market.
The above stated factors are a part of the macro environment influence the business
operations of firm.
Micro environment factor
Micro environment factor associated with the internal environment of the business
venture. Woolworth Company is associated with the following factors and features related to the
business operations entertain by the organisation.
Strength:
 Resource management of company is very progressive in nature.
 Hiring practices involve both internal and external recruitment practice.
 Marketing campaign of company involve both online and offline mode of promotions.

Weakness:
 Financial resources are limited in number with the Woolworth Company.
 Small staff restrict the company to manage operations.
Opportunities:
 Digital marketing is a great opportunity for organisation.
 E-commerce platform is another key opportunity associated with the organisation.
Threat:
 Competition in the market.
 Pandemic was a huge threat.
 Lock-down imposition related threat.
3. Informal investigation of seconmdary data
The recent records of the company presented the fact that the revenue of the company is
recorded as 42.151 billion in the year 2020. The growth rate of the organisation was 5.34% in the
year 12019 that is further reduced to -11.51% in the year 2020. The decline in the sales of the
company clearly indicated about the fact that covid 19 pandemic has completely demolished the
overall growth potential and ability of the business venture in respective target market (Sarkodie
and Owusu, 2021). The lock down and the shut of the offices and stores could result into decline
sales of the business venture. The effect of the pandemic is such that the customers has move
forward over e-commerce mode of trading as the stores were either closed or unable to assure a
proper safety. The physical contacting becomes major issue in the tie of covid that could
motivate the customers in market to switched towards only the online trading practices in order
to meet all different retail product requirements.
The views of the Bloom and et.al. (2020), has criticized the fact that the effect of
pandemic has been very negative in respect to the business venture. The pandemic has motivated
and directed the business houses to look forward to the e-commerce trading practices so that
customers can easily place the order even by staying at home. This become very challenging for
the super market stores who are not associated wioth the e-commerce trading practice to meet all
different needs and requirements of the customers (Mofijur and et.al., 2020). Avoiding physical
contacting become also a huge challenge for the target customer to meet the need and
requirements. The decline in sales of the Woolworth Company is clearly sating and quoting the
aspect that the effect of the whole pandemic has been over the sales and growth of the company.

The result of this is that company also faced issues related to liquidity and many such functional
issues.
4. Analysis of results
Correlations
Do you feel that
covid pandemic
could negatively
affect the sales
and growth of
the Woolworth
Company?
Have you
noticed that
physical contact
in sales could
resist the
customers to
come to stores
for the shop?
Do you feel that covid
pandemic could negatively
affect the sales and growth
of the Woolworth Company?
Pearson Correlation 1 -.250
Sig. (2-tailed) .486
N 10 10
Have you noticed that
physical contact in sales
could resist the customers to
come to stores for the shop?
Pearson Correlation -.250 1
Sig. (2-tailed) .486
N 10 10
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .612a .375 .297 .43301
a. Predictors: (Constant), Do you feel that covid pandemic could
negatively affect the sales and growth of the Woolworth Company?
This is clearly demonstrated the fact that the covid pandemic has created a relationship
between the decline sales of company. The above stated factors can clearly demonstrated the fact
that the relationship between customer safety and sales of company is direct. If the organization
cannot offer the safe environment than it would significantly affect the sales and growth of the
company.

Primary research
Covid pandemic affected negatively sales of company
Q.1) Do you feel that covid pandemic could negatively affect the sales and growth of the
Woolworth Company?
Yes 6
No 4
Interpretation:
The above stated graph clearly demonstrate the fact that 60% of the respondents agreed
with the fact that covid 19 pandemic could demolish the sales and growth possibilities of the
business entity. The remaining 40% respondents did not agree with the fact. Based on the
majority of respondents it can be stated that the pandemic has negatively affect the sales of
company.
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
60.00%
40.00%
Column B

E-commerce is a key strategic choice to overcome negative impacts of covid 19
Q.2) Do you agree that e-commerce was the key strategic option that could overcome the
negative impacts of the covid over sales?
Strongly agree 4
Agree 2
Neutral 1
Disagree 2
Strongly disagree 1
Interpretation:
The respondents has clearly demonstrated that e-commerce is a key strategic choice that
can be used to overcome the negative impacts of covid 19 pandemic,. 40% respondents has
strongly agreed to this fact.
Physical contacting in sales resist customers to come over company's stores
Q.3) Have you noticed that physical contact in sales could resist the customers to come to stores
40.00%
20.00% 10.00%
20.00%
10.00%
Strongly agree
Agree
Neutral
Disagree
Strongly disagree

for the shop?
Yes 7
No 3
Interpretation:
The above stated graph clearly indicate that 70% of the respondents mentioned that the
physical contacting is a key hurdle company face to attract customers for visiting company's
stores. The remaining 30% respondents disagree to the fact. Based on the opinions stated by the
majority of respondents it can state that physical contacting can be a possible reason behind
declining company's sales.
70.00%
30.00%
Yes
No

Healthy environment at stores
Q.2) Do you agree with the fact that e-commerce was the key strategic option that could
overcome the negative impacts of the covid over sales?
Strongly agree 2
Agree 2
Neutral 1
Disagree 3
Strongly disagree 2
Interpretation
The majority of respondents has clearly mentioned that Woolworth Company is capable
enough to provide a healthy atmosphere to customer over its stores.
Strongly agree Agree Neutral Disagree Strongly disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
20.00% 20.00%
10.00%
30.00%
20.00%
Column B

CONCLUSION
The impact of covid 19 was such that it could completely affect the sales of the
Woolworth Company. The physical contacting involve in the sale become a major reason behind
the decline sales of the organisation.
RECOMMENDATION
 This is recommended that the Woolworth Company must give emphasis over the e-
commerce sales of the company.
 Ensuring health safety become essential for the organization (Haleem and et.al., 2020).
 Company should also ensure physical distancing at the time of shop in stores of company
(Savić, 2020).
REFERENCES
Books and Journal
Angelucci, M and et.al., 2020.
Remote work and the heterogeneous impact of covid-19 on
employment and health (No. w27749). National Bureau of Economic Research.
Bloom, N and et.al., 2020.
The impact of Covid-19 on productivity (No. w28233). National
Bureau of Economic Research.
Chinn, D and et.al.,2020. Safeguarding Europe’s livelihoods: Mitigating the employment impact
of COVID-19.
McKinsey. Retrieved May, 31. p.2020.
Fairlie, R., 2020. The impact of COVID‐19 on small business owners: Evidence from the first
three months after widespread social‐distancing restrictions.
Journal of economics &
management strategy, 29(4). pp.727-740.
Haleem, A and et.al., 2020. Areas of academic research with the impact of COVID-19.
The
American journal of emergency medicine, 38(7). pp.1524-1526.
Jallow, H., Renukappa, S. and Suresh, S., 2020. The impact of COVID-19 outbreak on United
Kingdom infrastructure sector.
Smart and Sustainable Built Environment.
Mofijur, M and et.al., 2020. Impact of COVID-19 on the social, economic, environmental and
energy domains: Lessons learnt from a global pandemic.
Sustainable production and
consumption.
Sarkodie, S. A. and Owusu, P. A., 2021. Impact of COVID-19 pandemic on waste
management.
Environment, development and sustainability, 23(5). pp.7951-7960.

Savić, D., 2020. COVID-19 and work from home: Digital transformation of the workforce.
Grey
Journal (TGJ), 16(2). pp.101-104.
Seetharaman, P., 2020. Business models shifts: Impact of Covid-19.
International Journal of
Information Management, 54. p.102173.
Appendix
Q.1) Do you feel that covid pandemic could negatively affect the sales and growth of the
Woolworth Company?
 Yes
 No
Q.2) Do you agree with the fact that e-commerce was the key strategic option that could
overcome the negative impacts of the covid over sales?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Q.3) Have you noticed that physical contact in sales could resist the customers to come to stores
for the shop?
 Yes
 No
Q.4) Do you believe that Woolworth Company could not offer a healthy and safe atmosphere to
its customers that also become a result in the form of declining sales of company?
 Strongly agree
 Agree
 Neutral

 Disagree
 Strongly disagree
Q.5) What recommendations do you give to company for addressing the whole situation.