1. Introduction: The trend of industrial growth and business expansion is the by-product of the globalization and increased product demands. However, industrial stability is an ever significant matter for the country’s economic firmness. Most of the industries certainly assist in augmenting the overall gross domestic product of the country. Simms & Trott, (2014) enlighten that there are various factors that impact the industries’ profitability and sustainability that may include the demand and supply, competition and so on. The retail industry of United Kingdom is the growth and profitability driver for the country since it has been operating in the market. Emphasizing on the retail industry of UK, the competition is too high and the market competition impacts by the various environment and behavioural trends of the general public. According to Parliment.UK, (2014) in the year 2012, the wholesale and retail trade provide 16% of monetary productivity and 16% of services and employment chances in the UK. However, the economic downturns and other factors impact the buying power of the people that indirectly impacts the profitability of the industry. According to Parliment.UK, (2014) the customers of retail sector spent approximately £27 billion in UK. The analysis showed that every £1 that has been spending was 47% in groceries provisions, and 46% was in non-food stores in the United Kingdom along with the expenditure of the remainder in other sectors. However, the retail
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1. Introduction The intended purpose of this report is to outline the nature of the Australian retail market, specifically the retail food sector. This report will then discuss the role of market segmentation and how it has resulted in the emergence of new retail channels available to consumers. The emergence of ALDI as a new retail channel will be the focal point of the report along with a brief overview of other new-coming organizations such as Costco. Through the use of current journal articles, books, internet sites and government publications, this report will outline the benefits of the new retail channels available to consumers, especially in regards to saving on common expenses. This report will also discuss the possible room for
The UK supermarket industry is a very competitive and profitable industry. It is made up of four main players with significant share of the market, and then various smaller companies who focus on smaller niches in the market such as the bottom of the market discounters and the top of the line speciality stores. It is an interesting market and this report evaluates the attractiveness of the industry using Porter’s five forces model with an insight into how market nicher Waitrose sustains a competitive advantage. Next this report looks at how major player Sainsbury’s successfully competes against its rivals using differentiation strategies, and analyses current consumer trends and problems can effect this industry.
I am required to evaluate the impact of changes in the economic environment on marks and spencer’s in relation to government decisions, policies, spending and economic management
The 1920’s mark the shift in American politics, culture, and economics from traditional to modern. The industrial and economic expansion of the 1920’s created more room for women in the workforce, and a society centered more on consumption than politics. Radios and silent films became widespread, and dissolved physical and cultural boundaries between urban and rural communities. The expansion of advertising alongside the development of the music and film industries exposed citizens to a society held together by consumption. The idea of consumerism was new to Americans. Due to the recent increase of pay and decrease in work hours for blue-collar workers, Americans were able to spend more money on items previously considered luxuries. The prevalence
In the United States, their are about 1 million outlets (stores), and numerous amounts of online retailers that sell items to the public. The demand in this industry is primarily driven by spending and interest rates. Due to this fact economic health affects consumer confidence and spending. But overall there has been a consistent trend of sales in the sector as a whole. Overall in the United States, the industry has a combined revenue of about five trillion dollars. Revenue (in current trading dollars) for retail trade in the US is to forecasted to grow an annual compounded rate of five percent between 2015 and 2019. In addition, total United States retail sales increased 2.1 percent in the first ten months of 2015 compared to the same period in 2014.
The economic success of retailers greatly depends on their ability to reach customers and meet customer demands in ways that is convenient for the customer. No longer can retailers expect customers to only shop at their retail stores. Retailers are required to provide customers with the multiple shopping channels and flexible fulfillment options that they demand. Companies who fail to do so will see their customers take their business to competitors who are both willing and able to serve customers based on consumer demand (xxx)
The Australia retail sector is under huge pressures from many different forces. In the recent Lander & Rogers Briefing, Myer CEO Bernie Brooks referred to the current environment as ‘the third big revolution of the past 100 years’ for retail. This analysis will look at recent opinions and commentary on the Australian retail sector, with a focus on the potential consequences for the economic future for Myer. These commentaries will assist in highlighting the forces that are in play within the sector
The industry is therefore highly competitive right now. With fewer people making their way to department stores, the industry is filled with players all struggling to maintain market share through innovative strategies. The retail industry however is unusually hard to penetrate. Despite the high level of competition among the players in the industry, new players are finding it hard to stay in the industry because of the size of the players. One of the strategies of retailers right now is expansion in almost all cities across all states. This would enable them to capture as much market as they can. The industry players ' size is one of the important barriers to entry that should be considered. With the size of the main competitors and the increase in the number of their stores, new players are finding it hard to enter the industry.
Since the income level is the predominant factor in a consumer society, where do people mainly spend their money? Studies show that in the U.K. every three out four pounds spent on food and groceries are at the four largest super market chains – Tesco, Sainsbury´s, Asda and Morrisons. Tesco alone accounts for one out of every three pounds (Bevan, 2006). How does this realilty affect the small business owner and the economy as a whole? There are two sides of the matter regarding this power trick. On one hand, the sociologist Dennis Wrong (1997) describes the grant supermarket as a zero-sum power, which means there are only winners and losers in a game concept. Due to the increasing growth of Tesco and Sainsbury´s local convenient store formats since 2000, a very smart idea that uses its financial power to create market opportunity to meet today´s working peoples` fast life style and demand, people are more likely to pass through these convient stores rather than shop in the local grocery store, butchers, or fishmongers stores etc. What this means is thatthe expanding market and profit gain of the grant supermarkets, such as Tescos and Sainsbury´s, is at the cost of the closure of local small
The grocery retail industry worldwide has grown in recent years to become one of the most intensely competitive industries due to the continuous amounts of new entrants. A grocery retailer is one that sells food and other general household items. Hypermarkets, supermarkets, discounters and small grocery retailers are all under the grocery retail umbrella. Between 2003 and 2008, the grocery retailing industry accounted for 45% of store-based retail values sales over the world. The figures
The global supply chain in the retail industry has witnessed changes and shifts which have led to opportunities and challenges for the involved players. This has occasioned shifts in trade and consumer behavior patterns. Among these are global growth patterns brought about by explosion of more cities and thus growth in infrastructure. There have been flexible supply chain trends which have enabled retail operators to adapt effectively to unexpected circumstances and changes. Moreover, globalization has changed the way retail supply chain is managed as more mature markets emerge to provide logistic and standard solution needs of the businesses. Conversely, near-shoring has
It shows that between 2004 and 2007, total retail growth was only 4.6% while online retail was increased by 130% (The Times 100, NA) (Table 5). With no doubt, it seems more difficult for retail shops to survive, but Lindquist (2002) stated that shoppers prefer to integrate internet shopping with other forms of shopping (Lindquist et al., 2002). The supply chain of Topshop and its changes can help us to understand how retail shops nowadays adjust its position in the
There are 92,796 grocery stores in the UK and the market value increase by 19.5% in the last 5 years and according to IGD forecast the UK grocery market should reach £203bn by 2019. But what we can see in the figure 1 that from 2009 to 2014 annual grow in the grocery market start decreasing from 4.9% in 2009 to 2.8% in 2014. One of the reason for this is difficult economic conditions which had an effect for consumer spending. Consumers choose to spend less money on food by buying less food or by looking for cheaper places. Retail market is diversified into three main sectors: Hypermarket and superstores which accounts for 42.3% of retail market, convenience stores 21.4% and small supermarkets 20.3% (Figure 3). So about 84% of sales are done in these three sectors. The biggest 4 retail chains in UK are: Tesco which takes 28.7% market share, Asda has 17.3%, Sainsbury’s 16.6% and Morrison’s 11%. (Figure 2) So, if we will sum up 4 biggest retail market chains we will have about ¾ of market share. Finally, a strong characteristic of this sector is competition with price wars and a
supermarkets like Tesco offering the biggest discounts in the UK and Sainsbury 's offering of substitute products too (Mintel, 2010). This shows the responsiveness and flexibility towards consumer needs in the supermarket industry.
Economists use the retail sales data in their models to make predictions on a wide variety of economic issues. Again, because retails sales accounts for such a large proportion of GDP, it is used along with other factors as a way to estimate the direction of the quarterly and annual GDP numbers. Used in conjunction with data such as the consumer price index, it is also very relevant for inflation forecasts as the data can offer glimpses into the affects of rising or falling prices. This in turn is closely tied to predictions for the direction of future interest rates as potential additional government action. Finally the retail sales data can be used to estimate