Retailing in the U.KThe retail industry in the UK is a highly competitive arena, in which price rollbacks, promotions

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Retailing in the U.K



The retail industry in the UK is a highly competitive arena, in which price rollbacks, promotions and heavy discounts are the tools in the battle for share in an increasingly consolidated market. Over the review period, the increased concentration of the retail market in the hands of a smaller number of operators allowed superior economies of scale, which in turn created lower and more affordable prices. Far wider consumer choice was also made possible as retail outlet sizes grew.

Consumer confidence has been maintained even though problems such as those of 11 September 2001, a serious foot and mouth outbreak in British farming in 2001, and a wider global economic downturn. We are still a nation of shopkeepers, and shoppers: employment in retailing has increased, and there are signs that consumers are becoming cannier, more selective and more demanding, in terms of price. Also, greater affluence has brought with it a taste for the good life: higher quality food products, more expensive personal and electrical goods with which to indulge our leisure time, and also a desire to cut corners and choose simplicity and convenience, both in food buying, and sectors such as DIY and even clothing, where high style and seasonal fashion changes have given way to functionality and ease of wear. This reflects the changing lifestyles of women, which influenced many of the retail trends between 1999 and 2003. More women working, both full-time and part-time, greater affluence among parents, less time to be at home and cook, sew and clean, and ultimately less time to shop, has had a huge impact on the high street, as one-stop shopping has sounded the death knell for many small food retailers in particular.

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 The expansion of non-food – clothing, electrical goods, home furnishings etc – is threatening many of the most successful multiples on the British retail map: Boots, Sainsbury’s, Woolworths and WH Smith, to name but a few. Low prices combined with convenience give Tesco and Asda advantages that are difficult, if not impossible for the others to emulate.

In all, this report attempts to demonstrate that retailing remains an important and dynamic activity among consumers in the UK, a changing landscape, and a vital and continuing aspect of the national economy.

Increasing concern over levels of consumer debt, now over £1 trillion, ...

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