Unit 32 Food Retailing Assignment (GC01654)
Table of Contents
Introduction.
Task 1 Report on structure, size and product types of the food retailing sector in the UK.
P1 Describe the size and structure of the food retailing sector
P2 Describe the types of products offered by food retailers.
Task 2.
P3- Explain how developments in the consumer market have impacted food retailing.
Task 3.
P4Explain how health, safety and hygiene legislation has impacted food retailers.
Diseases and Dangerous Occurrences Regulations 1995.
Control of Substances Hazardous to Health 2002.
Food Safety Regulations 2005.
Hazard Analysis Critical Control Point
Task 4.
P5 Explain how food retailers are meeting their social, ethical, environmental and corporate social responsibilities.
Conclusion.
References.
Introduction
Food retailing means selling foods by retailers to the end-users and customers. Food retail companies sell food through various shops like department stores, grocery stores, drug stores, mass merchandisers. The competition in the food retail market is now increasing day by day (Kotler, 2015). Food retailers are now facing extreme pressure from their competitors. Due to frequent changes in customer preferences and move towards online shopping, the global food retail industry has experienced slow growth in the last several years. Moreover, government investment in infrastructure and the entry of global food giants are contributing a lot to the food retail sector (Seelert, 2015)
Task 1 Report on structure, size and product types of the food retailing sector in the UK
P1 Describe the size and structure of the food retailing sector
Structure of food retailing sector in the UK
Online retailing
Online grocery shopping is estimated to account for just 4-5% of total food expenditure. However, it accounts for approximately £1 in every £5 spent online. This means there is a significant opportunity for growth in click-and-collect (drive-through grocery pick-up) (Baldwin, 2015). Online grocery has changed the way consumers shop for food. Many consumers buy bulky goods online and “top-up shopping” at convenience stores which is undermining the value of hypermarket formats (Holah, 2015). There is no single model for online grocery retailing. Sainsbury’s uses a “dark stores” outlet that is not open to the public to fulfill their online grocery orders. Waitrose uses its public stores to satisfy orders, while Ocado has a vastly automated process of picking and packing in huge warehouses (Seelert, 2015).
Superstores
Superstore is a large supermarket. It can also be defined as a large retail store. Superstores have diversified merchandise such as groceries, electrical products, and even clothing (Seelert, 2015). They can also sell a wide variety of products such as clothing, computing and even sporting goods. Businesses like Morrison’s, Sainsbury’s, ASDA and Waitrose are classified under this category (Baldwin, 2015).
Warehouse retailers – This type of retailer is usually situated in Business Park and where premises rents lower (Holah, 2015). This enables this type of retailer to stock, display and retail a large variety of goods at very competitive prices.
Specialty Retailers – Specializing in specific industries or products, this type of retailer is able to offer expert knowledge and a high level of service to the customers. They also add value by offering accessories and additional related products at the same outlet (Seelert, 2015).
E-retailor – This type of retailer enables customers to shop online via the internet and buy products that are then delivered (Bldwin, 2015). This type of retailer is highly convenient and is able to supply a wider geographic customer base. E-retailers often have lower rent and overheads. Thus, they can offer very competitive pricing (Gustafsson, 2015).
Convenience Retailer – Usually located in residential areas. This type of retailer offers a limited range of products at premium prices due to the added value of convenience (Seelert, 2015).
Discount Retailer – This type of retailer offers a variety of discounted products. They offer low prices on less fashionable branded products from a range of suppliers by reselling end of the line and returned goods at discounted prices (Holah, 2015).
Size of the food retailing sector in the UK
At present, in the UK, there are varieties of food retailers. These food retailers are very important in the retail market. Out of the total retail sector of the UK, a large part of the sales come from food retailers (Seelert, 2016). All types of food retail outlets before were small in size and established mostly on the high street, prominent places, centers of town and cities. However, in the present business world, local structure and size have been totally changed. Now, stores are established in a form of a larger physical appearance (Baldwin, 2015). Once the food retailing sector was town-based, now it has flourished in every area of the UK. The change of customer’s preferences, changes in lifestyle, development of the local area has a tremendous effect on the retail sector (Holah, 2015). Once various prominent foods retailing store, super shop etc were only available to the famous city or town. As time has changed, the retail sector has had to cope up with the changing market demand. To keep the customer satisfied retailing industry is now spreading their business all around the UK to give people the opportunity to shop from them (Gustofsson, 2014). McDonald’s is the leading global food retailer with more than 34,000 local restaurants serving approximately 69 million people in 118 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women (McDonald’s Annual Report, 2016)…………………..