Uk Retail Industry Essay Example

of the market to be classified as a monopoly, the government believed that this acquisition would allow massive companies like Tesco to manipulate prices and potentially eliminate competition. In November 2000, Tesco lowered prices and had to be instructed by the government to raise them for maintaining market stability.

The British agriculture industry is experiencing economic stress, particularly in the pricing of meat. Supermarket prices for meat were satisfactory to farmers in 1996, but by 2003 a decline had occurred that put pressure on the government to raise prices to prevent total collapse of British farming and discourage consumers from purchasing foreign meats. Unlike other nations, it appears that Britain does not prioritize its own industries by buying domestic products. The government has implemented various acts including Sale of Goods Act (1979), Food Safety Act (1990), Health and Safety at Work Act (1974), and Minimum Wage Act to address these issues. Exchange rates, inflation, interest rates and unemployment also impact United Kingdom grocery sales; however, despite these challenges over 650 new grocery stores have opened across Britain in just five years.

The UK offers a wide range of store sizes, varying from 300 to 25,000 square feet. In the last decade, five major companies have entered the market including Wal-Mart and Aldi. This has resulted in intense competition among stores with frequent pricing battles. Some stores have expanded overseas such as Sainsbury's opening stores in Egypt and Asda acquiring sixty Gateway stores in 1994. Recently, UK supermarkets have implemented loyalty schemes that offer features like reward cards and points for future purchases.

Big retailers are offering 10p off per litre of fuel when consumers shop with them. This

tactic creates the impression of good value and is in response to the growing competition posed by European discount stores like Lidl. To address rising unemployment in certain areas, Tesco has collaborated with the government to open large stores that can create 200 jobs. This approach benefits all parties involved.

The government's improved statistics have resulted in more unemployed people finding work, with Tesco recently hiring new employees at slightly above minimum wage. Fluctuations in interest rates are linked to public spending habits; reduced spending leads to lower inflation but higher unemployment levels. Conversely, a high exchange rate attracts foreign investment to the UK. Lowered interest rates increase customer spending and demand for goods and services, leading to decreased unemployment but potentially causing demand-pull inflation.

In the past decade, there has been a noticeable shift in social lifestyles among many individuals.

The way we live has been influenced by several factors, including the increase of women in the workforce and the decrease of traditional meals. This has caused a rise in demand for fast and easy food choices, such as microwave meals that can be quickly prepared. Additionally, the prevalent work culture has left many individuals feeling unable to take breaks which contributes to higher levels of workplace stress.

Supermarkets have responded to evolving consumer needs, including an increased demand for eco-consciousness and convenience. Tesco has launched "Metro" stores to cater to busy customers, while many supermarkets have adopted biodegradable packaging for food. The product range now includes healthy eating options as well as children's lunchbox items like "cheese dunkers." These products can command a higher price due to rising household disposable incomes and the desire for status among

school children.

The growth of ethnic minorities in Britain has led to an increased demand for Indian and other foreign foods. In response, shops have recognized this need. The industry has also experienced significant technological change over the past decade. Advances in computer technology and research methods have had a major impact. Home shopping, which involves taking orders over the internet, picking them up from the store, and delivering them the next day, has become popular among busy business people who don't have time to shop. In addition, street market research has become more advanced thanks to computerization.

Instead of being approached by individuals asking time-consuming questions in the middle of the street, people can now complete leaflets that they receive via post. The introduction of the check-out in supermarkets has also been a significant technological development. Prior to its invention, stock taking and adding up had to be done manually, but now everything is computerised. The file maintenance department automatically orders a replacement product when one is sold to ensure that stock never runs out.

Bibliography: Corporate Strategy 3rd Edition – Richard Lynch www.quickmba.

The website www.themanager.org displays information about the 2nd edition of the book Business Studies, written by Hall, Jones, Raffo Brooks, and Weatherston in 2000. Additionally, the site mentions The Strategy Process, a book authored by H. Mintzberg and J.

B. Quinn and S. Ghosal