Impact of Recession on Food Retail Industry in UK

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CHAPTER 01: INTRODUCTION1

Background of the Study1

Research Aim2

Research Objectives3

Research Questions3

Significance of the Study4

CHAPTER 02: LITERATURE REVIEW5

Introduction5

Food Retail Sector in United Kingdom5

Overcoming the impact of Recession in the Food Retailing Industry8

Consumer Behaviour towards Food Retailers in UK9

CHAPTER 03: METHODOLOGY11

Introduction11

Research Philosophy11

Research Method12

Research Strategy13

Ethical Considerations14

REFERENCES15

CHAPTER 01: INTRODUCTION

Background of the Study

Recession (2008-2009) led to changes in the business and customer behaviours and it is not like a hurricane that reshapes the natural environment of a country (Sloman and Wride, 2009, p. 11). The retailers have faced changes in the behaviours of the customers after the recession and currently the growth in the economic environment is low as most of the retailers question themselves that if they conduct their business in a better way. In order to answer these questions, there is a need that innovative and new strategies and ideas are adopted so that it is easier for the retailers to provide value with the services and products (Hosken and Reiffen, 2004, p. 146). This research study will make an investigation regarding the changes and effects that the economic recession has on the food retail industry of the United Kingdom and the way it has impacted Tesco and Sainsbury. This research study also focuses on determining the effects that recession have on the retail supermarkets in the United Kingdom and the changes that they have went through in order to deliver value to the customers and businesses.

The United Kingdom has faced major challenges that have arisen from the recession that arise recently around the world, as the consumers have become highly cautious regarding their spending because of insecurity in job, price and tax increases and the major cutbacks in the spending of the government (Dhyne and Veronese, 2006, p. 192). During 2000s, the consumers of the United Kingdom seek out for convenient, ethnic and healthy foods and they also adopted for quick meals, single portion snacks, and new ingredients. This has led to a stronger innovation in the industry that locally manufactures food in the United Kingdom. Recently, there has been a strong retail trend in the United Kingdom as the importance of the consumers has been allocated for the purpose of preserving the environment. This is one of the reasons due to which localisation has become important between the consumers that try to reduce their consumption of personal food meals.

There is still a variety of factors that has an effect on the food retail industry of the United Kingdom during the past years, namely the budgets for household, crisis in the banking industry and unemployment. Besides the downturn in the economy, the United Kingdom has recorded volumes that are positive in sales of beverage and food industry; even though, the sales value has suffered that the trade of consumers down to the items that have offered the money for getting the best value for it (Solomon, 2009, p. 24).

The United Kingdom faced its largest ever deficit of budget ...