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Retail industries in UK - Dissertation Example
Author : ian04
Pages 14 (3514 words)
This study focuses on the retail industries in the UK, specially the segmentation in this sector, as well as how the financial crisis affected it. The recent financial crisis caused huge problems in capitalist countries such as UK and US whereas Asian countries escaped from it. …
Research shows that when the economic aspects of the country were steady and reliable, the consumer confidence was at its highest. This is evident from the fact that before 2007, when employment levels and positive externalities prevailed in the economy, UK consumers spent lavishly. On the other hand, from September 2007 onwards, a strong decline in consumer spending has been observed. Moreover, consumers started to stay away from borrowing options available to them from 2007 onwards. These facts clearly suggest that consumer behavior has been considerably changed since the entry of global recession and UK retail sector is suffering from it. The following graph gives a clear idea about the UK consumer spending habits before and after recession. It is evident from the above graph that consumer spending dropped steeply from 2008 onwards, even though it started declining from 2007 onwards. This is because of the fact that 2008 was the year in which people started to realize the depth of the recession problems. The economic slowdown that causes the financial crisis had a large adverse impact on the financial cycle, and even the level of employment due to decreasing sales. Millions of people are working in UK retail sector and therefore problems in this sector caused huge problems to the employees in this sector. Many of the retail sector employees either lost their job or faced salary cuts as a result of the economic downturn. ...