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. The UK government announced plans to lay off 200 workers, whereas Tesco planned to terminate the employment of 5000 of its workers. Many other retailers also followed the path of Tesco. The retail sector recruited around 236000 employees between the years 1999 and 2003; and retail employment had reached a little over 3 million by the summer of 2003. However, between 2004 and 2007, they started exhibiting negative results, with stagnant employment of three million employees, till 2008 (Macneil & O’Brien, 2010, p. 88). The following graph illustrates the unemployment problems in UK before and after recession. Recession caused poor consumer spending which caused problems in employment sector including the retail sector. (Williams, 2008) From the above graph, it is clear that unemployment rates started to increase drastically from 2008 onwards. Effect of Financial Crisis on UK Retail Sector “The unsustainable paths of capital accumulation into which the retailers had locked themselves led to a major property crisis in the early 1990s” (Poole et al., 2002, p.169). The scenario has changed a lot a couple of decades after 1990. At present UK retailers are
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. …
The food retail industry of UK has a long and solid history. It was during fifties and sixties that the concept of supermarkets and self service shops became popular which has been marked as the starting of retail industry in the United Kingdom (Hamlett, Alexander, Bailey, & Shaw, 2008).
This paper focuses upon the retail industry as a sector of the economy in which individuals, employees, consumers and organizations interact each other. The UK retail sector is the third largest in the world; United States and Japan hold first and second places respectively. It is contributing more than 8% of UK’s GDP. More than 3 million people are currently working in the UK retail industry.
The researcher should ensure that the chosen methodology is effective and appropriate to the research. This is because an inappropriate research methodology leads to wastage of resources such as time and effort. Thus, secondary methodology would be most appropriate to the purpose of the proposed research.
Their shopping habits have changed, and they have become more cautious about spending on leisure. Fig.1Shopping Values (Credit Crunch and Financial Crisis Effect on Consumer Buying Behaviour 2005). 2. Job uncertainty- Consumers experience a lot of pressure on their job security.
LITERATURE REVIEW: 9 2.1. Introduction: 9 2.2. Performance of Food Retail Industry in UK: 9 2.3. Impact of Recession on Performance of Food Retail Industry in UK: 11 2.4. Changing Trends in the Retail Industry: 13 2.5. Summary: 16 3. RESEARCH DESIGN AND METHODOLOGY: 17 3.1.
egration of the previous variables in the analysis of basic trends in the UK retail sector; development of solutions for the problems and challenges cited so that a better model of state policy, protective measures and regulation could be achieved. The study employed descriptive and critical account of the data gathered, using secondary sources extracted from extant body of literature on the subject.
The researcher took a sample of three companies from both sectors which included Tesco PLC, J Sainsbury PLC and Morrison’s PLC from retail sector and BP, BG, and Shell from oil and gas sector. 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.
In specific, a huge number of financial markets are still coping with the effects of financial crisis. Particularly, governments have played a significant role in supporting its financial markets to survive in midst of such financial crisis. In the British economy, retail sector enjoys noteworthy importance due to its contribution in GDP of the country.
ut UK Retail Banking 4.2 Roles and Impact of the Financial Services Authority (FSA) 4.3 Results of 2010 UK Retail Banking Satisfaction Survey 4.4 Results of 2010 UK and Europe Retail Banking Market Survey 4.5 Results of Web Survey of 1,000 Bank Customers 4.6 Results of Telephone Survey of Barclay Life Customers in the Past 4.7 Results of an Industry Study of Internal Marketing of UK Retail Banks Chapter 5 - Conclusions Chapter 6 - Recommendations 6.1 Limitations of Recommendations 6.2 Room for Further Research References Appendix Abstract This project unveils the global economic situation as well as the UK economic conditions behind the UK Retail Banking industry problems with customer satisf
This study is an assessment of how much this change has been implemented or is successful within the branches. The corporate strategy of Barclays has also been analyzed and showed how the bank strategy could or should change from an emphasis on sales to an emphasis on customer service.
48 pages (12000 words)Dissertation
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