Retail and the high street
Sutton-Cheam Park Farm superstore, UK
Introduction
Over the past decade the UK has seen rising incomes, longer working hours, an ageing population, more working mothers, and more time-poor/cash-rich parents1. How people shop has changed to reflect these trends, with strong growth in convenience retailing near to where people work and live for example, and in on-line retailing as improved technology has made it quicker and easier to shop via the internet. These changes have created new challenges for society and Tesco.
We have maintained our popularity by listening to customers and responding to their changing needs. As life has become busier and more complex, and living costs more expensive, Tesco has helped make shopping simpler, more convenient and affordable. Customers have rewarded us with their loyalty. We also listen to our staff, to our suppliers and to many other people who are stakeholders in our business. We work hard to keep our finger on the pulse of social change.
However, our success with customers has prompted increased interest from some stakeholders in the health of the high street. In May 2006 the Office of Fair Trading (OFT) referred the supply of groceries by retailers in the UK to the Competition Commission for investigation. The focus of the inquiry is to find out whether the market is functioning effectively.
Changes in society, and in the retail sector, are certain to continue. This means that we must continually offer new products and services, from more ethnic food lines to Tesco Finest and Tesco Value. We must create store formats, such as ‘Metro’ and ‘Express’. We must provide for more Internet shopping and home delivery. We must cater for people who want everything in one place, as well as for those who want to buy last-minute and locally. And we must continue to cater for people in deprived communities.
Source:
- Henley Centre report prepared for Ofcom