Technological Impact on Retail Buying During COVID-19: A Comparative Study of Tesco and ALDI
Question
Task: How has technology influenced consumer purchasing behavior in the UK retail sector during the COVID-19 pandemic, with a focus on the strategies adopted by Tesco and ALDI to adapt to the new technological environment?
Answer
Introduction
This proposal aims to explore the technological impact on retail buying during the COVID-19 pandemic. Specially, it will focus on the difference between Tesco and ALDI, two major UK supermarket chains. The research will investigate the changes in customer behaviour and strategies adopted by the two organizations in the order to adapt to the pandemic. Covid-19 has had a massive impact on the retail industry, and this research seeks to understand how the two organisations have reacted to the new circumstances.The UK retail industry has been particularly hard hit by the Pandemic. Many stores have been forced to close and large numbers of workers have been furloughed or made redundant. This has had a significant impact on the retail sector, both in terms of the financial impact and the customer experience. As such, it is important to understand how the retail sector has been affected and how organizations such as Tesco and ALDI have adapted to the crisis.This research will look at the technological aspects of the retail industry that have been impacted by the pandemic (Passetti et al., 2021). This includes changes in customer behaviour, such as the move to online shopping and contactless payments, as well as the use of new technologies such as AI and machine learning to improve customer service (Agarwal, Swami and Malhotra, 2022). By looking at these changes, this research will provide insight into the current state of the retail industry and the impact of the pandemic on it.Finally, this research will provide insight into the strategies adopted by Tesco and ALDI in order to adapt to the new circumstances. By looking at the strategies of both organizations, this research will provide an understanding of how they have responded to the crisis and the impact that this has had on their business.
This research will provide an in-depth understanding of how the Covid-19 pandemic has impacted the retail sector and how organizations such as Tesco and ALDI have adapted in order to survive. It will also provide insight into the changes in customer behaviour and the new technologies that are being adopted by the sector.
Aim
The aim of this research is to investigate the effects of technology on consumer purchasing habits in the UK retail sector between Tesco and ALDI during the Covid-19 epidemic. This study will look into the factors that have affected the retail purchasing patterns of Tesco and ALDI customers, the strategies used by both businesses to adapt to the new technological environment, and the variations in customer purchasing patterns between the two businesses as a result of technological advancements. This study will also evaluate how new technologies have affected the competitive environment in the UK retail sector. This study also evaluates how to enhance the technology so that the organization gets more and more customers and both the business gets more profits by using the best suitable strategy.
Objective
The objectives of this research are to:
1. To identify the variables affecting alterations in retail buying habits among Tesco and ALDI customers.
2. To analyse how technology has affected consumer spending patterns during the Covid-19 pandemic in the UK retail industry.
3. To examine the methods Tesco and ALDI used to adjust to the pandemic's new technical landscape.
4. To assess the impact of new technologies on the competitive environment of the UK retail sector.
5. To evaluate how Tesco and ALDI customers' purchase patterns have changed as a result of technology improvements.
Literature Review
Nowadays, whole the world has been impacted from the covid 19 as it has numerous impacts on technology. One of the most extensively studied areas of retail buying Covid-19 is the impact of technology on retail shopping. Recently, there have been a number of research studies conducted to examine the effects of technology on retail shopping during the Covid-19 pandemic. A study conducted by Vladimirova et al. (2022) found that online shopping was the most popular form of retail shopping during the pandemic, with 45% of UK consumers engaging in online retail shopping. Furthermore, the study found that contactless payment methods, such as mobile payment apps, were widely used during the pandemic to facilitate safe and secure shopping experiences. People can buy many of the goods and services via online platforms, on online platforms people can order all the necessary goods without going outside and it becomes a habit.
The covid 19 pandemic has had a major impact on Tesco and ALDI, the two leading supermarkets in the UK. Both the company had to adapt their operations to meet the requirements of the consumer in the duration of covid 19. Tesco has been able to use digital solutions to help manage its supply chain, while also providing customers with information via its website and app. Aldi has implemented a range of measures such as contactless payment, delivery and click and collect services, which have been essential in keeping customers and staff safe during the pandemic. Technology has been an important factor in enabling both businesses to continue trading and providing customers with the products they need.
The rise in popularity of online retail shopping has been attributed to the restrictions imposed by governments around the world in response to the pandemic. According to the authors Masa’deh et al. (2023), the restrictions have led to a shift in consumer behaviour whereby consumers are increasingly turning to online retail shopping as a safe and convenient alternative to in-store shopping. The restrictions have also led to an increase in the number of retailers offering contactless payment methods to facilitate safe and secure transactions.
In addition to the influence of technology on retail shopping during the pandemic, a number of studies have also examined the impact of retailer’s strategies on retail buying. A study conducted by the authors Pangarkar, AroraandShukla (2022) found that retailers have implemented a range of strategies to attract and retain customers during the pandemic and leverage technology to enhance the customer experience.
A study conducted by Bryson, (2021) investigated the impact of Covid-19 on retail buying behavior by comparing the retail strategies of two of the largest grocery retailers in the UK-Tesco and ALDI. The study found that both retailers have implemented a range of strategies to attract and retain customers, such as offering competitive pricing, providing promotional discounts, and leveraging technology to enhance the customer experience. Furthermore, the study concluded that both retailers have been able to successfully adapt to the changes in consumer behavior brought about by the pandemic.
Overall, the literature has provided valuable insights into the impact of technology on retail shopping during the Covid-19 pandemic. Furthermore, the literature has highlighted the importance of retailer’s strategies in responding to the changing needs of customers. The information will be useful in developing a research proposal exploring the impact of technology on retail buying during Covid-19, with a focus on a comparison between Tesco and ALDI.
Data and Results
The information required for this study will be acquired through secondary sources, such as scholarly publications, news stories, official papers, and business reports. This information will be utilised to conduct a thorough investigation of how technology has affected retail purchasing habits in the UK retail sector during the Covid-19 epidemic.
The information gathered will include information that is qualitative as well as quantitative. Tesco and ALDI's customer buying behaviour will be measured and compared using quantitative data, and qualitative data will be used to obtain further understanding of the tactics both businesses have adopted to adapt to the changing technology environment.
The information acquired will be used to compare and analyse the shopping habits of Tesco and ALDI customers as well as to determine how technology has affected retail shopping during the Covid-19 outbreak. The analysis's findings will be used to determine whether technology improvements have caused any changes in the buying habits of customers between the two businesses and to assess how new technologies have affected the competitive environment in the UK retail sector.
Government organizations, researchers, and industry managers will make up the research's target audience. The research's findings will be applied to inform retail organisations' strategy for adjusting to the changing technological environment and to shed light on how technology affected consumer purchasing behaviour during the Covid-19 outbreak. The results of this study can be applied right away by business executives and governmental organisations to enhance consumer purchasing patterns and guarantee the profitability of retail businesses.
Critical Reflection and Project Planning
It has been both tough and satisfying to work on this study endeavour. I've been able to hone and strengthen my research and analytical skills through this assignment. Additionally, I have learned a lot about the condition of UK retailing today and how technology has affected consumer behaviour throughout the Covid-19 pandemic.
Due to the retail industry's continual change, I have run into certain challenges, such collecting trustworthy and current data. As a result, I've had to modify my schedule to make sure I can gather the most recent and pertinent information for my research. To address this problem, I have added more time for data collection and analysis to my timeline and modified my research goals to make sure I can complete my research within the allocated time.
I've made a thorough Gantt chart for my working timeframe in order to make sure that this research is successful. The timetable starts with an introductory research phase in which I will do a comprehensive literature analysis on the health of the UK retail business and the influence of technology on retail purchase behaviour during the Covid-19 pandemic.
After that, I'll be collecting data and analysing it, which will entail looking at Tesco's and ALDI's adaptation strategies, comparing and contrasting the two companies' customer buying patterns as a result of technological advancements, and assessing how new technologies are affecting the competitive environment in the UK retail sector. Then, based on my observations, I will formulate conclusions and suggestions. I intend to periodically assess my progress during this process to make sure my research is on track.
Finally, I want to write a report at the end of the module to show the results of my investigation. The study will include my opinions and recommendations along with a thorough investigation of the effect of technology on retail purchasing behaviour in the UK retail industry between Tesco and ALDI during the Covid-19 pandemic. I am convinced that this research will be helpful to business executives, academics, and governmental organisations by offering insightful information about the health of the UK retail shopping market today.
References
Agarwal, P., Swami, S. and Malhotra, S.K., 2022. Artificial intelligence adoption in the post COVID-19 new-normal and role of smart technologies in transforming business: a review. Journal of Science and Technology Policy Management.https://www.emerald.com/insight/content/doi/10.1108/JSTPM-08-2021-0122/full/html
Bryson, J.R., 2021. COVID-19 and the immediate and longer-term impacts on the retail and hospitality industries: dark stores and turnover-based rental models. In Living with Pandemics (pp. 202-216).Edward Elgar Publishing.https://www.elgaronline.com/abstract/edcoll/9781800373587/9781800373587.00029.xml
Masa’deh, R.E., Almajali, D.A., Almajali, M.R., Almajali, E.R. and Alshurideh, M.T., 2023. Factors Influencing Online Shopping During Fear of Covid-19 Pandemic in Jordan: A Conceptual Framework. In The Effect of Information Technology on Business and Marketing Intelligence Systems (pp. 305-315). Cham: Springer International Publishing. https://link.springer.com/chapter/10.1007/978-3-031-12382-5_16
Pangarkar, A., Arora, V. and Shukla, Y., 2022.Exploring phygitalomnichannel luxury retailing for immersive customer experience: The role of rapport and social engagement. Journal of Retailing and Consumer Services, 68, p.103001.https://www.sciencedirect.com/science/article/pii/S0969698922000947
Passetti, E.E., Battaglia, M., Bianchi, L. and Annesi, N., 2021.Coping with the COVID-19 pandemic: the technical, moral and facilitating role of management control. Accounting, Auditing & Accountability Journal, 34(6), pp.1430-1444.https://www.emerald.com/insight/content/doi/10.1108/AAAJ-08-2020-4839/full/html
Vladimirova, K., Henninger, C.E., Joyner-Martinez, C., Iran, S., Diddi, S., Durrani, M., Iyer, K., Jestratijevic, I., McCormick, H., Niinimäki, K. and Thangavelu, P., 2022. Fashion consumption during COVID-19: Comparative analysis of changing acquisition practices across nine countries and implications for sustainability. Cleaner and Responsible Consumption, 5, p.100056.https://www.sciencedirect.com/science/article/pii/S2666784322000109
