RETAIL INDUSTRY

United Kingdom's Retail Industry

United Kingdom's Retail Industry

Introduction

The economy of the United Kingdom even after the recent economic depression stands as the World's Sixth Most Strongest economy if measured by the gauge of Gross Domestic Product (GDP), and considered to be the world's seventh strongest economy if looked upon through the perspective of Purchasing Power Parity (PPP). However, if we look upon in Europe, it is third strongest economy after France and Germany. However, if we measure in terms of Per capita income, United Kingdom finds its feet on the grounds of being the 20th strongest economy, and if gauged by Purchasing Power Parity (PPP) it stands as the 17th strongest economy. Other than the above mentioned facts United Kingdom is the active member of organizations like European Union (EU), International Monetary fund (IMF), World Trade Organization (WTO), World Back, United Nations, G7, G8 and G20.

United Kingdom does enjoy a considerable position in the world as far as the economic strength is concerned (Paul & Paul 1997, p.114). However Recent Economic crunch did affect the Economies of the different countries around the globe. As a result of the recent economic crisis many industries too faced an effect. Some of the industries were able to face the challenges and effects presented by the recession whereas some of the industries face a downward trend. Before moving further in the context of the paper it is important to decipher the meanings of the recession so that the paper can be approached in a much more effective manner. As per the spirit of the macroeconomics, recession means the general decline in economic activity from one country or region, measured by the decrease in annual rate of Gross Domestic Product (GDP) for a sufficiently long period.

Recession tends to affect multiple sectors as it allows the reduction of almost all economic variables like production of goods and services. Investment tends to see a downward trend; the job market similarly faces a decline as the inflation tends to rise due to the reducing wages of the employees. As a result the purchasing power of the consumers also tends to decrease (Jeanne 2000, p.62). However, in the context of this paper we intend to analyze the Retail Industry of United Kingdom in the line of the global recession. This would however be done through different perspectives in order to develop a sound understanding of the subject.

Discussion

As highlighted above in course of the paper that the retail industry does not operate in isolation. Rather it tends to depend upon the purchasing power of the consumer. As the recession tends to target the buying power of the consumer thus along with different industries the retail industry is build to witness a decline. The retail Industry tends to be identified as economic sector which includes companies specializing in the marketing of mass products or services to large amounts of consistent customers as the industry tends to deliver products to its end consumers. The Retail Industry of the United Kingdom was ...