RETAILING & BUYING ‘The External Environment’

1. RETAILING & BUYING‘The External Environment’

2. Overview of Approach • Introduction • PEST factors in the industry • Competition • Key issues • Student Activity

3. Introduction • The micro environment: the internal environment • Consumers, distributors, interest groups, competitors, suppliers

4. The Macro Environment • Four key components: political/legal, economic, social/cultural, and technological.

5. CUSTOMER EXPENDITURE • Mintel 2000 • Spending on food has decreased • Leisure-’on the go’

6. Population and Household Structure • We are all gettng older • Less large families • More single households • Fragmentation • Convenience market

7. Employment Structure • More people in work- Mintel 2000 • More women in work • Convenience market • Increasing hetrogeny in food shopping

8. Changing Lifestyles and Eating Habits • Less formal eating occasions • More snacking • DAPYS- ‘Geest-Mintel 2000’ • More foreign foods • More variety

9. Health and Food safety concerns • Growing awareness in last decade- COMA reports • Healthy, low-calorie, reduced fat foods. • E.g. Weightwatchers, Be-Good-To Yourself • Functional Foods Claudio!

10. Microwave and Freezer ownership • 70% of households have a microwave- Mintel 2000 • Microwave meals • Stand alone freezers • Buying in bulk- BOGOFF

11. Car ownership • 12.6% increase from 1995-2000 • Out-of-town superstores • Mobility is not an issue?

12. Competition • Increasing competition, new merchandise lines • Non-food activities • “value retailing”- Cullen et al, BFJ, 103, 2001 • “Switching”

13. Key Issues • Convenience shopping • “New convenience-style retail formats emerge as a means of accomodating products and services that save time and reduce household work” Cullen, BFJ, 103, 2001. • New retail formats- Tesco article

14. Student Activity • Look at this quote again: “New convenience-style retail formats emerge as a means of accomodating products and services that save time and reduce household work” Cullen, BFJ, 103, 2001. Can you give any examples.

15. Thanks For Listening • Any Questions?

16. References • Cullen. P and Newman. J. A, 2001, ‘From retail theatre to retail food show, The shrinking face of grocery’, BFJ, 103, 7, MCB press. • Clarke. I, 2000, ‘Retail power, competition and local consumer choice in the UK grocery sector’, EJM, 34, 8, MCB press. • Mintel report 2000, Environmental factors affecting the UK grocery market.