P3+ D1
Explain how developments in the consumer market have
impacted on food retailing
Developments in the consumer markets have impacted on food retailing whether it’s the changes
within technology or changes in attitude to environmental issues. These issues effect the FR sector
drastically, especially the ‘Big four’ (Tesco, Morrison’s, Sainsbury’s and Asda.) this is due to issues
such as Radical and continuing changes. Developments in the customer market have also impacted
the food retailing sector as two companies, Aldi and Lidl sell good quality products at a cheaper price
point. This allows social change as 51% of the UK population shops at the two store every month the
reasons for this is that Aldi and Lidl are 40% cheaper than stores such as M&S as well as having okay
to good quality, this is showed by customers as 78% said that discount store products are improving
and 34% said they are just as good as other big retailers. To further back up the point of discount
stores, 36% of shoppers at Tesco have swapped to discount stores showing the social impact they
are having on the environment.
The two stores Aldi and Lidl have forced the ‘Big four’ to adapt to the consumer market as they have
lead the big four to a slow rate of growth and in some cases depreciation. As well as this customers
now find the big four to be the same and lack individuality. By Aldi and Lidl leading the new way
supermarkets such as Asda have had to invest 1.25 million into cutting their prices in hope to attract
customers back by the equal price point of stores such as Aldi.
Radical and Continuing changes:
Continuing change changes affect the big four as they need to adapt to developments such as self-
scan checkouts, This was a continuing change as it was implemented slowly starting off by a couple
of self-checkouts until customers got used to it. This allowed queues in store to decrease, which
allowed the customers to shop easier and save time making it more convenient. Technology was a
major factor within this as it allowed for the company’s to implement the self-scan check out.
Another continuing change was the self-scan at stores such as Tesco this was implement slowly
through the past couple of years and now is in fully working order as it allows customers to scan
barcodes of all the items within the shopping trolley and at the end of their shop they input the self-
scan machine to tell them the total needed to be paid, this is very convenient as it saves time by not
manually scanning products at the end of your shops as well as allowing you to know how much
money you are paying whilst your shopping this could potentially help customers as if they can stick
to a budget.
A radical change effecting the big four was the 5p plastic bag, this was a radical change as it was
implemented straight away. This was implement into stores as too many people were littering plastic
bags which started damaging in the environment as it takes 450 years for plastic to degrade,
meaning if a price point was applied customers would not want to pay it and would come in with
their own bags saving the environment as less bags would be made.
This affects Tesco as they now can generate more money by selling plastic bags instead of giving
them out for free, as well as this continuing changes such as self-scan allow Tesco to decrease
waiting time in lines meaning shopping can be done more effectively and will meet consumer
demands, this is a major thing for Tesco as they strive “to be the champion for customers”
(Unknown author, Tesco PLC, 2018) This motto suggest that they want to help customers and make
shopping more convenient.
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