Even due to the economic downturn, it is still predicted to increase by 15% over the next five years in the future (SAS, 2011). It is still considered to be an impressive figure despite the fact that it represents a slow growth. Over 9% of GDP of UK is generated by the retail industry which is the success factor of retail companies overseas. With the increase of e-commerce, the products are able to reach through millions of consumers. Hypermarkets have become competitive in offering diversified products to their wide customer base. The major players in the market, Tesco, Asda, J Sainsbury and Wm Morrison accounts for 80% of the total market share (Lloyds Bank, 2012). London is considered to be a strong market for consumer shopping and many people including tourists are inclined towards purchasing in London. It beats out other developed cities including New York, Tokyo and Paris with total spending of ?64.2 Billion (GAIN, 2010). The recessionary periods have hit the retail sector of UK which is very disastrous for the sector, but from a wider perspective, the major players in the market have not undergone major changes which might reveal that the market is running smoothly for the longer term. This also means that the big players did not change their strategies for competition and did not find a need to undergo major changes. The UK retail sector provides biggest revenues to their companies which in turn increases the GDP growth of the nation. The presence of major players indicates that the sector is strong with major assumption of future growth (GAIN, 2010). Weaknesses: The UK retail market is a mature market which is not intended to grow in volume terms. The margins and earnings from the retail sector are threadbare and mostly the earnings are coming from the online stores. As the economy suffers from recession global downturn, it has been tough going for the UK retail market. According to Verdict research, 2012 growth rate of the UK retail sector would be 1.2% which is the third lowest growth in the history of UK retail in 49 years (SAS, 2011). It has been forecasted that the non-food items in the retail sector would decline for consecutive fourth year as it would have a decrease of -0.5% (SAS 2011). Food is an essential item in our lives, but since the recession period it has allowed people to spend more but for the same quantity. The greatest weakness is the rising food prices over the world which is affecting sales of the major companies and is resulting in slower growth. The grocery section has been badly hit by the downturn which has decreased the consumers spending and now the industry is termed to be as ‘recession-resilient’. The major price drop has resulted in the industry which has hauled Tesco to provide promotional strategies which is the biggest player in UK retail. Asda did not carry out the move to lower its price and insisted that it was the cheapest provider of consumer goods. The rivalry is intense in the sector and has accounted for low profit margins and growth (GAIN, 2010). Opportunities: Even though the margins are threadbare in UK retail sector, the big four of the retail sector, Tesco, J Sainsbury, Asda and Wm Morrison are planning to buy 4 million of retail space which is equivalent to 130 average supermarket stores (SAS, 2011). This proves that the big players consider a growth in the sector in the future which provides an opportunity to grab market shares. According to the UK economy
SWOT Analysis for UK Food Retail and UK Oil and Gas Industry SWOT Analysis for UK Food Retail and UK Oil and Gas Industry The paper attempts to discuss SWOT Analysis for UK Oil and Gas industry and UK Food Retail industry…
The report is to demonstrate the researcher’s knowledge of the marketing intelligence in the United Kingdom labor market, via the use of both secondary and primary sources and theories as well. This report will focus on the labour market sector in the United Kingdom, bringing forth, a better understanding of the labor market and its performance over the years.
Though the article focuses largely on smaller food companies, this particular resource provides insights into the marketing function for food companies related to positioning, differentiation, and consumer attitudes in the UK. The market power of the suppliers is also described to gain perspective on how supplier power impacts the food sector.
The authors describe, from an economic perspective, the variety of products being consumed in large and small volumes with a focus on consumer behaviour related to product value. The article offers insights from the chief executive of Asda in relation to buyer behaviour and the current economic recession that is creating a value-conscious consumer who is shifting their buying methodology in relation to what is considered “cool frugality”, a significant departure from previous non-thrift or ostentatious consumption patterns.
Every one in the community though understands the issues and problems with the conventional pattern of housing development, the much needed change still eluded the sector. The case study undertaken here illustrates various aspects of housing in a local community, the changes the sector have undergone in the recent years along with the challenges and issues experienced.
The conclusion from this study states that retailing is now considered as one of the major sector of the national economy than ever before because of its daily interactions, trends to provide jobs & contribution to GDP. From this point of view, this sector employs somewhere 2.8 and 3 million people while many of them are getting part-time facility.
The discussion of the development of the UK budget hotel sector is important in giving inferences on how an enterprise grows into one sector whose purpose is to cater to a wide range of people. Its development which is one focus of the research is a relevant discussion that gives insights on how economic and social factors impact the development of an industry, such as the UK budget hotel.
Also the most of the spent is going to value retailer (Over 1 in every 3 pound (GBP)). Though Childrenswear has underperformed in the total clothing market from the last 10 years, recently the industry is experiencing a significant contribution in the total clothing market.
By using ratio analysis it becomes possible to compare the financial performance of companies, notwithstanding whether the companies included in the analysis are large or small as compared to each other (Helfert, 2001); and
it cannot be used to
In order to conduct the analysis, the researcher considered SWOT analysis, Porter’s Five Forces Model and financial ratios analysis of the companies for the past five years. The analysis of the two sectors has revealed that there are
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