Business Strategies of Supermarkets in Britain and Cyprus - Capstone Project Example

 This chapter introduces the research concept in terms of the research background and the scope of the research work. The aim of the research, main research question, research hypotheses are introduced to give an in-depth understanding of the purpose of this research. Finally, the pattern of organizing this research work has also been given. 1.7. Research Scenario: During the past decades the shopping trends among people have changed tremendously. The people who were purchasing from market towns have started their shopping in out of town large supermarkets.

This transition from traditional shopping to shopping under globalized and monopolized conditions was quite noticeable during the transitional period in the UK from 1950s. The concept of supermarkets (all under one roof) has emerged that, indeed, provided greater variety, accessibility, and choice of products to potential customers. The phenomenal growth of out-of-town supermarkets because of changing lifestyles of people all across the world (this will be elaborated in chapter one) compelled the British government to conduct its own survey in September 1998 on nine market town locations in Britain to know the impact of these new supermarkets on small businesses and markets in town centers.

From the DETR's (1998) survey, it was revealed that there was a measurable impact on the town centers, drawing people out to the outskirts to use these new supermarkets and avoiding using the shops in the center of town. The DETR survey (1998) concluded that the rise of supermarkets has negatively affected the business and has reduced their business by over 10% (Lyon et al, 2004) & (Parkins, 2005). It should be mentioned that supermarkets acquire a large variety of products in bulk from suppliers/producers/manufacturers at relatively lower costs and then sell at the retail prices.

However, these prices charged from customers are lower than in-town small shops and retails stores charge. Also, the availability of parking space attracts consumers because of the convenience and ease of shopping, unlike town shops that have limited variety and somewhat higher prices. Consumers, therefore, have switched to shop around from these supermarkets that sell an experience instead of selling (just) products. Hence, the business volume of town shops has reduced considerably; thereby forcing the owners to close their stores and find other occupations.

(Lyon et al, 2004) & (Parkins, 2005)