Research ProposalEssay Preview: Research ProposalReport this essayIntroduction- Every little helpsThe retail market in the UK is considered to be mature so it is unlikely to see large expansion like in the 1980s. Large retailers are likely to remain the dominant players while trying to increase their market share through mergers and acquisitions. Premium operators such as John Lewis, Waitrose and Marks & Spencer continue their strong trading performance. In June 2005 the retail industry employed 2.9 million people. This equates to 11%, of the total UK workforce. UK retail sales were approximately Ј260 billion in 2005 (ONS). The sector is expected to see the creation of 270,000 new jobs in the years leading up to 2012, with 31% of these at managerial/professional level .
The Retail Market in Britain (2007-2010)
The average sales price of an individual product – a measure of how cheaply an individual shopper can afford the consumer and, generally, how well prepared they are for the experience and convenience of their purchase. This is a measure of how well the consumer values, understands and engages with the products in their daily lives. In 2007 The retail sector had about 800,000 retail workers, which was double the level in 2006. The average age of the workforce was 26% so much less than was the population of London in 2005. These figures show a large percentage market share. The average work hours of the workforce was 3.2 million including 1.6 million in high growth areas, while the average hours of full time workers were less than 3.2 million.
In the past 30 years, average household income has declined from £15,300 to just under £10,000 while the average average income of a full time worker has declined to just £20,000. Even in the past 3 decades a lot of the costs and services suffered through, such as unemployment for most workers and increased healthcare costs.
The average weekly living wage in the United Kingdom has never fallen below half a standard of living for households, and the average weekly earnings per week have risen from £11.40 to £11.45 since 2006. With the median average earnings of working families reaching as much as £50,000 it means that they now earn a median of £42,000 per week. At £40,000 an average male worker earns £37 per week. This compares to £8,120 for a married male worker.
The rate of income growth is much better for women than it is for men. During the 1990s there was a large increase in median income for men, from £34,500 to £34,700 between 1995 and 2011. The majority are now earning a median of £38,000 by 2016. During the 1990s, both men and women saw a greater increase than in 2000 when the increase was over 70% for women. The gap is still fairly large, between men and women. This suggests a strong economic recovery for the average man.
Economic growth in the USA and the US is more gradual than in any other continent. It is often underestimated but this is where the data are most troubling. The US has 1.9 million workers that make between £10,000 and £20,000 per week, which translates into a median household income of €50,000 per year – about $100,000 more than in many other countries. This is significantly higher than the American national average of €36,000 per year, while the highest figure of the US is €40,400 for middle aged (the average age in this country is 66).
Despite our best efforts we have not achieved a significant amount of economic recovery. In 2012 unemployment for those over 65 increased as a share of the labour force. This may have been offset by higher average hourly wages, but this must
Tesco is one of the largest food retailers in the world, operating around 2,700 stores.The group operates through multiple store formats, including Extra, Superstore,Metro, Express and hypermarkets. The company operates in the UK, other Europeancountries and Asia.Its stores stock roughly 40,000 food products. In addition, the group also sells nonfooditems including electrical goods, home entertainment, clothing, health andbeauty, stationery, kitchen utensils, soft furnishings and seasonal goods such asbarbecues and garden furniture in the summer. The group also markets productsunder its own labels at three levels: value, normal and finest.The group operates over 1,900 stores in the UK, its largest geographic market. Apartfrom regular groceries, the UK stores also have gas stations. The group has becomeone of UKs largest independent petrol retailers. Furthermore, the group has a jointventure with Royal Bank of Scotland to provide personal finance (Tesco PersonalFinance) in the UK. It now provides various financial services to over 3.4 millioncustomers in the UK.The group has operations in the rest of Europe, including the Republic of Ireland,Hungary, Poland, Czech Republic, Slovakia and Turkey. Tesco operatesapproximately 90 stores in the Republic of Ireland, 100 stores in Poland, 90 stores inthe Hungarian market, 35 in Czech Republic, 35 in Slovakia and eight in Turkey.Tesco also has operations in Asia, including China, Japan, Thailand, South Korea,Malaysia and Taiwan. The group operates around 40 stores in China, 110 stores inJapan, 220 stores in Thailand, 60 stores in South Korean, five in Taiwan and 10 inMalaysia.The group provides online services through its subsidiary, Tesco.com. The group alsoprovides broadband internet connections (Tesco broadband) and telecommunicationsservices (Tesco Mobile and Home Phone) through a 50-50 joint venture with O2, amobile phone company. The group also provides its financial services through itswebsite.Over the past few years, Tesco has established itself as the dominant player in the UK retail sector. It is the largest British retailer by both global sales and domestic market share. It is the worlds third-largest grocery retailer, the fourth-largest retailer behind Wal-Mart of the United States, Carrefour of France, and The Home Depot of the United States. Originally specializing in food, it has diversified into areas such as clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music downloads, internet service consumer telecoms and most recently budget software. Tescos revenue for the 52 weeks to 25 February 2006 was Ј38.259 billion. In 2006 it adjusted the accounting date for its non-UK and Ireland operations, and including 60 weeks of non-UK and Ireland operations revenue was Ј39.454 billion. Group profit before tax was Ј2.210 billion for the 52 week period and Ј2.235 billion including 60 weeks of non-UK and Ireland turnover. According to TNS Superpanel, Tescos share of the UK grocery market in the 12 weeks to 18 June 2006 was 31.4%. Across all categories, over Ј1 in every Ј8 of UK retail sales is spent at Tesco. Tesco also operates overseas, and non-UK revenue for the year to 25 February 2006 was 23% of total revenue. The company has a total market value of about Ј29.090 billion (October 2006). Tesco has recently opted to expand internationally further and establish itself as a stronger internationally. It is close to tying up with TATA Group for retail venture in India. Tesco Expands Into U.S. with Fresh & Easy Format. Tescos U.S. move also follows a land grab by the UK company in the fast-growing Chinese market, where it opened its first Tesco-branded store in Beijing last month. It is to invest USD 185 million in Malaysia Expansion. These planned expansions will lead to large growth in revenues, increased synergies and eventual share price growth. On the basis of these findings we make our suggestion for investors regarding the stock of Tesco plc: BUY
SWOT ANALYSISTesco is one of the largest food retailers in the world. In addition, the group also sellsnon-food items, including electrical goods, home entertainment technology andclothing. Tesco is the largest retail operating group in the UK. The groups leadingmarket position in the UK enhances its brand, provides economies of scale andmakes it easier for the company to launch private label brands. Intense competition inboth domestic and international markets, however, could adversely affect itsprofitability.StrengthsMarket leadershipTesco is the largest retail operating group in the UK. It had a 20% share of the UK