Retail Businesses Innovation
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Various studies have been carried out on the issue of having some government regulations holding back the food retail sales in the United Kingdom. The results showed that there were some challenging laws being introduced in the system making it very hard for the retailers to operate their stores .Such laws included the laws about sales promotion which clearly stated out that the discounts rate could only go up to 33 %. As a result, many retailers have been forced to close their stores while others are left with no other option other than to lay off some of their workers due to the increased concern of dejected sales condition that is hoped to be going on for the next one and half years time.
An open market business is expected to offer the customer and the economy various benefits, the condition in UK has proved this wrong due to various disadvantages which are being brought across by the costly regulatory machine. This paper will try to examine the current authoritarian tapering preparation in the retail businesses and how products are managed in the food retail based markets as well as how the new innovation will help campaign for the consumption of healthy foods in the rural areas.
According to various marketing literature carried out in the UK, the retailer power has been discovered to be rising. The new all-embracing stores with a stylish reliability power have been created resulting to the rising customer’s demands. All the same these stores are not able to have a solution to the problems that are brought about by the government regulations like making healthy food stuffs very expensive and very hard to access for the rural people thus deterring the contact points between the customers and the retailers. This paper will try to find out how the leading retailers have managed to reconcile the physical expansion of their businesses and customers point of reference under the new stated-out market regulations.
The UK government is also facing problems of having to be lenient on one part of the country and leaving the rest of the country suffering. It promotes and allows investors to only invest in the urban areas and highly condemn the out of town investment thus resulting to the rural people having to incur and extra cost of coming to town for shopping.
The new adaptations will be considered as the innovations that have taken place in the retail businesses. These improvements will be aimed at reviewing the current condition of having the retail businesses controlled by the government regulations. The innovation will be aimed at having a self regulatory system which will help the retail business have a modernized way of contacting their customers by being more accurate in responding to their customer’s demands and responses, a good example of such strategies will be encouraging mobile vendors in the rural areas. The new system will also be characterized by resilient store formats.
Competition is among one of the fundamental element in the economical part of any market. The paper will be very helpful in scrutinizing the ramification that will come about as a result of the new system being introduced into the food retail market. Such corollaries include the competence trade-offs against efficacy. The porters five forces model was used to analyze the current condition that most food retail businesses are in and the effects that those forces have on their performances. The Competition taking place in the UK food retail industry has been a debatable matter for a long time due to the existence of the four chief companies that have dominated the market simultaneously with the Tesco threats that have created a monopoly trend in the market.
In UK, the planning system is trying to lower the food retail production rate by raising the barriers to entry thus making it difficult for new investors to enter the business thus reducing the competition rate and denying new investors the chance to make profit from the economies of scale . There seems to have been an existence of a ‘complex blend of productivity’, competition and modernization issues that are limited to the tight regulations. The tight regulation has out done and hindered the development of a customer focused innovation; it has also tampered with the flexibility of the business and mostly those located at the rural grounds.
The governments brought about the new systems and regulation and enacted them as laws after, seeing that the first three retailers (Sainsbury’s, Tesco and Safeway) had become prominent and had greatly benefited from their retail businesses since they used to open 80 businesses and over per year while they closed those they thought to be slow performing and those that were not easily accessible. As a result, the government thought these three investors had brought about high competition to those businesses in town since they used to invest in strategically located areas where many people were living thus attracting most people to go and shop at their businesses which were easily accessible compared to those Food retail businesses based in town where free parking for cars lacked at most times thus making it very hectic while going to shop at town.
The government decided to endorse new rules which supported only those who were investing in the urban areas since the food retails businesses in town were being closed due to lack of customers. The outcome of this action have not been easy on the rest of the retailers either since they are now being forced to pay a higher cash when purchasing the goods at the POS office thus discouraging many people from joining the business.
The new strategy should be aimed at having an open related market for the food retail companies so as to help those in the rural areas to access healthy food easily and allow other investors to benefit from the economy of scale. This tool will be used to analyze and make proper innovative and systematic systems that will help in securing the new regime in business that will support competition and allow investors to invest even in the rural areas.
The UK government has denied the new investors in the food industry licenses, as a result new strategies have been put in place so as to help those in the rural areas who have been discriminated upon by the tight regulation policies. The food industries in the United Kingdom are trying to solve the problems caused by the tight government regulations by trying to avail healthy and affordable food to those people who earn a low –income and live in the ‘food deserts’ or the rural areas .
Fast food restaurants and expediency stores are now in plenty in the rural areas as the first innovation that is out to help have healthy food easily accessible for the local people. It has been noted with high concern that the people living in the rural areas have been highly affected by poor diets and a high level of obesity amongst most people and as a result many are those who end suffering and dying from poor diet related diseases. This has been brought about by the issue of having limited access to groceries and supermarkets where fresh and healthy food stuff is sold. The rural people are forced to purchase food from the stores in their home areas where these stores stock fewer and low quality food.
A research was carried out in relation to this issue, and the results were as follows: the local retailers claimed that they were left with no other option other than to sell the unhealthy food stuffs to their consumers since they could not meet the high cost expected from them when purchasing the quality food stuffs from the supermarkets or from the grocery stores in town, together with the transportation cost incurred when transporting the goods from town due to poor infrastructure (Porter, 1980). They also claimed to be facing a higher loss rate incase they stocked healthy food compared to when they stocked the low quality and unhealthy food stuffs.
The retailers declared that they were forced to sell the healthy foods at a higher cost due to the high costs incurred when purchasing the goods so as to gain profit, but unfortunately they experienced losses since the high prices were not favorable to many people in the rural areas due to their low income.
Certain innovative strategies will need to be enhanced so as to solve the issue of unhealthy diet related cases in the rural areas. All the same, these innovations have to be in relation and in respect of the current government regulations. The initiative taken to introduce new fast food restaurants will to ensure that at least the rural people have a healthy food choice once in a while and with time, this will become a routine to take healthy foods. Other innovations such as having the supermarkets forming coalitions with the local retailers so as to help them to easily access healthy food and at a reasonable price thus highly throw in to bringing a change to the current issue affecting the rural people. Other policies like encouraging the farmers to initiate new local markets, agricultural enterprises which are supported by the community and any other marketing outlet that involve the consumer directly should be enhanced and encouraged in the local areas so as to advance the unhealthy food consumption to a healthy world of choices.