AN ANALYSIS OF THE UK SUPERMARKET RETAIL SECTOR Case Study

AN ANALYSIS OF THE UK SUPERMARKET RETAIL SECTOR - Case Study Example The industry is structured in a way that the supply chain is well defined. However major players in the sector who control its operation are the consumers, suppliers, distributors. However the retailers dominate this chain of supply in the industry. The main structural feature of the retail sector in the UK is the centralized production and a defined distribution chain. (Griffith and Harmgart, 2008) Sources of supply Due to the diverse nature of products that are sold in the retail industry in the UK, there are also various sources of raw material for the industry. These sources are both national sources and international sources. This depends on the nature of the products that are being sold in the industry. There are those raw materials which can be sourced from within the nation but there are others that will have to be important. Although some raw materials can be sourced within the UK, the supply does not equal the demand and hence the industry is forced to import from other countries. Most of the manufactured products are sourced from within the local industry. There are various industries in the UK which produced at a competitive rate in the market. However other sectors like the food sector imports most of its raw material since the UK is not endowed in some of the agricultural products. Most of the agricultural products that are produced in the tropical region are imported into the retail market in the UK which forms another supply chain. Agricultural products like tea, flowers, coffee, and other horticultural products and not produced in the UK and are imported from countries like India, Kenya, and from other countries. The service sector in the UK has been seeking services of professionals...As a result there has been increased demand for goods at the retail level. One of the peculiar characteristics that have been witnessed in the UK retail industry is the change in loyalty that customers had earlier held to certain brands of commodity. Apparently, there is a change in the way customers are buying goods and the increased entrance of many players in the retail market has affected the way retail traders conduct their business. Increased competition has seen increased innovation in the industry with shops struggling to hold customers. Customers to the retail industry include those coming from the middle class. Apparently the middle class has been described as the driver of economies since it takes less measures in the way it consumers. Improved economy has seen increased income in the middle class which ahs continued to change with the changing global culture. Like in all other countries, the tide of globalization has brought a change in the culture of the people and more and more people are becoming conscious of what the market can offer. The global culture has also changed towards a spending culture and more and more people are spending in the market. Apparently there has been increased demand in some product while there is decreasing demand of other products.